Identify Which of the Following Statements Is True

question 67

Multiple Choice

Identify which of the following statements is true.

• A)A partner's relief of debt is treated as if the partner receives a cash distribution.
• B)When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
• C)Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
• D)All of the above are false.

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Definitions:

Global Company

A business that operates in multiple countries across the world, often having a broad product or service reach.

New Market

Refers to an untapped or emerging area of demand or a geographic region where a product, service, or idea has not been previously offered or explored.