Which of the Following Assets May Cause a Partner to Recognize

question 84

Multiple Choice

Which of the following assets may cause a partner to recognize ordinary income rather than capital gain on the sale of a partnership interest?

• A)land
• B)long-term debt
• C)inventory
• D)buildings which have been placed in service after 1986

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Definitions:

Bonus Pay

A plan that provides one-time payments based on performance accomplishments.

Lump-sum Payment

A one-time payment for the total amount owed, as opposed to payments divided into installments.

Performance Targets

Specific goals set by organizations or individuals aiming to achieve a defined level of performance over a given period.

Canada Pension Plan

A federal social insurance program in Canada providing retirement, disability, and survivor benefits to eligible individuals.