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:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Goal

The desired result or achievement toward which effort is directed.

Creative Tension

A state that arises when there is a gap between reality and vision, often leading to innovative thinking and problem-solving to bridge the gap.

"I Don't Care"

An expression indicating apathy or a lack of interest or concern about a particular matter or outcome.