Identify Which of the Following Statements Is False

question 89

Multiple Choice

Identify which of the following statements is false.

• A)On June 30 of the current year, James Roe sells his interest in the Roe & Doe Partnership for $30,000. Roe's adjusted basis in Roe & Doe at June 30 is $7,500 before apportionment of any partnership income for the current year. The Roe & Doe Partnership uses the calendar year as its tax year and has no liabilities on June 30. Roe's distributive share of partnership income up to June 30 is $22,500. Roe acquired his interest in the partnership five years ago. Roe will have a long-term capital gain on the sale of his interest of $22,500.
• B)Section 751 assets include all inventory and all unrealized receivables in a sale or exchange situation.
• C)When a partnership interest is sold, the buyer and seller can allocate the sale price among the Sec. 751 assets and non-Sec. 751 assets in any reasonable manner.
• D)Statements B and C are true.

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Definitions:

Arteries

Blood vessels that carry oxygenated blood away from the heart to the body's tissues, except for the pulmonary arteries which carry deoxygenated blood to the lungs.

Deoxygenated Blood

Blood that is rich in carbon dioxide and low in oxygen, typically found in the venous system and right chambers of the heart.

Right Atrium

The upper right chamber of the heart that receives deoxygenated blood from the body and pumps it into the right ventricle.

Vena Cava

A large vein carrying deoxygenated blood into the heart, with two principales types: the superior and the inferior vena cava.