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:

Extrinsic Motivation

A form of motivation driven by external rewards, such as money or praise.

Creative Environment

A setting or atmosphere that fosters innovation and creativity, often characterized by openness to new ideas, collaboration, and diverse perspectives.

Robert Sternberg

Robert Sternberg is a psychologist known for his theory on the triarchic theory of intelligence, which includes analytical, creative, and practical aspects.

Belief Perseverance

The phenomenon where people continue to hold onto their beliefs even when faced with contrary evidence.