Identify Which of the Following Statements Is True

question 57

Multiple Choice

Identify which of the following statements is true.

• A)A contribution of services for a partnership interest is a tax-free transaction.
• B)For federal income tax purposes, formation of a partnership is governed by Sec. 721.
• C)When a partnership assumes a liability on property contributed by a partner, the only effect on the contributing partner's basis in his or her partnership interest is that his or her basis will be increased by the amount of the liability assumed by the other partners.
• D)All of the above are false.

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Definitions:

Collectivist Cultures

Societies or cultures that prioritize the needs and goals of the group over those of the individual.

Actor-Observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to their internal characteristics.

External Attribution

The process of attributing the cause of an individual's behavior to external factors, such as the environment or situational circumstances.

Aggressive Behaviour

Actions intended to cause harm or discomfort to another person, either physically or psychologically.