Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The basis for property distributed by a partnership cannot be increased above the carryover basis amount when it is received by a partner in a nonliquidating distribution.
• B)A partner's partnership capital account balance cannot be less than zero.
• C)The length of time a partner owns a partnership interest is relevant when determining the holding period for distributed property.
• D)All of the above are false.

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Definitions:

Predicate

The component of a sentence or an equation that expresses what is said about the subject, often involving a verb or relationship indicating properties or actions.

Proposition

An assertion that conveys a judgment or viewpoint.

Relativity

A theory in physics, formulated by Albert Einstein, that describes the interrelation of space, time, and gravitation, indicating how they are perceived differently depending on the observer's motion.

Physics

The natural science that studies matter, its motion and behavior through space and time, and the related entities of energy and force.