Identify Which of the Following Statements Is True

question 67

Multiple Choice

Identify which of the following statements is true.

• A)A partner's relief of debt is treated as if the partner receives a cash distribution.
• B)When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
• C)Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
• D)All of the above are false.

---

Definitions:

CMS

Content Management System, a software application used to create, edit, manage, and publish content in a collaborative environment.

FTP

File Transfer Protocol, a standard network protocol used for the transfer of computer files between a client and server on a computer network.

ISP

Internet Service Provider; a company that provides customers with access to the Internet.

Incoming Mail Server

A server that receives, stores, and delivers incoming email messages to the recipient's email account.