Which of the Following Statements Regarding Liquidating Distributions Is True

question 59

Multiple Choice

Which of the following statements regarding liquidating distributions is true?

• A)A partner will recognize a gain when the partnership distributes only money and the amount is greater than the partner's outside basis.
• B)A partner will recognize a gain when the partnership distributes only money and hot assets and the inside bases of the distributed assets are greater than the partner's outside basis.
• C)A partner will recognize a gain when the partnership distributes money, hot assets, and other property and the inside bases of the distributed assets are greater than the partner's outside basis.
• D)A partner will recognize a gain when the partnership distributes only money and the amount is less than the partner's outside basis.

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