All of the Following Statements Are True with Regard to the Formation

question 55

Multiple Choice

All of the following statements are true with regard to the formation of a partnership except:

• A)The partnership's basis in the transferred property carries over from the transferor partners.
• B)With regard to capital assets and 1231 assets,the partnership's holding period for the transferred property includes the contributing partner's holding period.
• C)The nonrecognition rules apply to both property and services contributed to a partnership.
• D)A transfer of property in exchange for a partnership interest causes nonrecognition of gain or loss treatment.

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Definitions:

Nat Turner's Rebellion

A slave rebellion led by Nat Turner in Virginia in 1831, which resulted in the deaths of dozens of white people and led to harsher laws against slaves.

Nullification Crisis

The 1832 attempt by the State of South Carolina to nullify, or invalidate within its borders, the 1832 federal tariff law. President Jackson responded with the Force Act of 1833.

Prime Field Hand

In historical contexts, especially during slavery in the United States, a term referring to enslaved African Americans who were considered to be the most physically capable and thus assigned to demanding field labor.

Slaveholding Class

Refers to the segment of society that owned slaves, primarily found in societies with agrarian economies where slave labor was used for agricultural production.