To the Extent of Built-In Gain at the Time of Contribution,partnerships

question 105

True/False

To the extent of built-in gain at the time of contribution,partnerships may choose to allocate or not allocate gain on the sale of contributed property to the contributing partner.

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Definitions:

Duration Of Assets

The sensitivity of an asset's price to interest rate changes, expressed in years.

Duration Of Liabilities

A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates, expressed in years.

Yield To Maturity

The total return expected on a bond if it is held until its maturity date.

Price Decline

Price decline refers to the decrease in the market price of a security or asset over a specific period.