Match the Following Statements with the Best Match from the Following

question 42

Multiple Choice

Match the following statements with the best match from the following choices. Choice M may be used more than once.
-Active member of LLC

• A)Includes the partner's share of partnership liabilities.
• B)Could result from sale of a partnership interest for more than the partner's share of the inside basis of assets.
• C)Liquidation payments from this type of partnership are always § 736b) payments.
• D)Could arise if a distribution results in loss to the distributee partner.
• E)May be a § 736a) payment.
• F)May receive § 736a) payments.
• G)Probably treated as a general partner for § 736 purposes
• H)Conversion of an LLC to a C corporation
• I)Liquidation payments from this type of partnership may include § 736a) payments.
• J)A § 736b) payment.
• K)Adjustment designed to bring inside and outside bases into balance.
• L)Partnership asset basis is at least $250,000 > FMV.
• M)No correct match is provided.

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Definitions:

Interest

The cost of using borrowed money or the return on invested funds, typically expressed as an annual percentage of the principal.

Purchased Equipment

Fixed assets bought for operational purposes, such as machinery or office fixtures.

3-Month Note

A short-term financial instrument that matures or is due for payment within three months from the issue date.

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including principal and any accrued interest.