Identify Which of the Following Statements Is False

question 79

Multiple Choice

Identify which of the following statements is false.

• A)Jean and Blossom form an equal partnership. Jean contributes $10,000 cash and Blossom contributes property with a $10,000 FMV and a $5,000 basis. When the partnership sells the property contributed by Blossom for $10,000 shortly after the formation, Blossom must include the $5,000 gain in her income.
• B)In order to shift income/loss between partners, there must be substantial economic effect.
• C)The BB Partnership wants to make a special allocation of $10,000 of long-term capital gain to Bob and a special allocation of $10,000 of ordinary income to Briana. This allocation will have a substantial economic effect.
• D)Partners must make up negative balances in their capital accounts upon liquidation of the partnership.

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Definitions:

Learning Theory

A framework that describes how knowledge, skills, attitudes, and behaviors are acquired, processed, and retained.

B.F. Skinner

An American psychologist and behaviorist known for his work in developing the theory of behaviorism and for his invention of the operant conditioning chamber.

Grammatical Sentences

Sequences of words constructed according to the rules of grammar for a particular language, effectively conveying meaning.

Language Acquisition Device

Hypothetical innate capability of human beings proposed by Noam Chomsky that allows for the learning of languages, especially during childhood.