Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)If a partner sells property received in a partnership distribution for a gain and the property was inventory in the hands of the distributing partnership, the partner will always recognize ordinary income.
• B)The primary purpose of Sec. 751 is to prevent partnerships from converting capital gains into ordinary income.
• C)Unrealized receivables include rights to payments on the sale of a capital asset.
• D)All of the above are false.

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Definitions:

Thylakoid Compartment

A component within chloroplasts of plants and algae where the light-dependent reactions of photosynthesis take place.

Photosynthetic Product

The chemicals produced by the photosynthetic process, primarily glucose and oxygen, which provide energy and metabolic inputs for plants and other organisms.

Autotroph

Producer. Organism that makes its own food using energy from the environment and carbon from inorganic molecules such as carbon dioxide.

Chemical Energy

A form of potential energy stored in the bonds of chemical compounds, released during chemical reactions.