If Property Contributed to a Partnership Is Subject to a Liability

question 58

True/False

If property contributed to a partnership is subject to a liability (assumed by the partnership), gain is recognized to the contributing partner to the extent of the liability.

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Definitions:

Tax Revenue

The income that is gained by governments through taxation.

Government

A system or group of people governing an organized community, often a state.

Product

A good, idea, method, information, object, or service created as a result of a process and serves a need or satisfies a want.

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to a change in price.