Upon the Sale of a Partnership Interest,a Partner Must Recognize

question 46

True/False

Upon the sale of a partnership interest,a partner must recognize ordinary income if the partnership has substantially appreciated inventory or unrealized receivables.

---

Definitions:

Analyzing Options

The process of evaluating different choices or paths before making a decision.

Select Few

A small and exclusive group of people chosen or regarded as being superior or having special privileges, skills, or qualities.

Panic Button Effect

A reduction in stress or suffering due to a belief that one has the option of escaping or controlling the situation, even if one doesn’t exercise it.

Medical Assistant

A healthcare professional who supports the work of physicians and other health professionals, usually in a clinic setting, through a variety of tasks.