Identify Which of the Following Statements Is True

question 33

Multiple Choice

Identify which of the following statements is true.

• A)If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner.
• B)The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution.
• C)When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated.
• D)All of the above are false.

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Definitions:

Reward Systems

are mechanisms set in place by organizations to recognize and reward performance and encourage certain behaviors in employees.

Teamwork

The process of people actively working together interdependently to accomplish common goals.

Compete

To strive against opponents for the purpose of achieving an objective, such as winning a game, securing a job, or achieving market dominance.

Win-Win Solution

A resolution to a dispute or negotiation that is beneficial to all parties involved.