Identify Which of the Following Statements Is False

question 79

Multiple Choice

Identify which of the following statements is false.

• A)Jean and Blossom form an equal partnership. Jean contributes $10,000 cash and Blossom contributes property with a $10,000 FMV and a $5,000 basis. When the partnership sells the property contributed by Blossom for $10,000 shortly after the formation, Blossom must include the $5,000 gain in her income.
• B)In order to shift income/loss between partners, there must be substantial economic effect.
• C)The BB Partnership wants to make a special allocation of $10,000 of long-term capital gain to Bob and a special allocation of $10,000 of ordinary income to Briana. This allocation will have a substantial economic effect.
• D)Partners must make up negative balances in their capital accounts upon liquidation of the partnership.

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Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling responses.

Nissl Bodies

Structures within the cytoplasm of neurons that are associated with ribonucleic acid (RNA) and protein synthesis.

Rough Endoplasmic Reticulum

A network of tubular membranes within the cytoplasm of the cell studded with ribosomes involved in the synthesis of proteins.

Enteric Nervous System

Known as the "second brain," this extensive mesh-like system of neurons controls the function of the gastrointestinal system.