Identify Which of the Following Statements Is True

question 74

Multiple Choice

Identify which of the following statements is true.

• A)The contribution of Sec. 1245 property to a partnership triggers recognition of ordinary income by the contributor at the time of the transfer.
• B)A partner may not recognize ordinary income when receiving a capital and profits interest in a partnership in exchange for services.
• C)When a partnership interest is given to a partner in exchange for services, the partnership can deduct or capitalize the FMV of the services, depending on the nature of the services.
• D)All of the above are false.

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Definitions:

Electrolyte Imbalance

A condition where the levels of electrolytes (minerals such as sodium, potassium, and calcium) in the body are either too high or too low, affecting bodily functions.

Tertiary Prevention

Interventions designed to manage and alleviate the symptoms of an already diagnosed disease or to prevent disease progression and complications.

Primary Prevention

Measures taken to prevent the onset of a disease or injury before it occurs, focusing on reducing risk factors.

Tertiary Prevention

Measures taken to manage and contain disease progression after it has established to prevent further complications or deterioration.