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:

Professional Entry

The process or requirements for becoming recognized as a qualified practitioner in a professional field.

Market Penetration

A business growth strategy involving efforts to increase market share within an existing customer base or market segment, often by competitive pricing, advertising, or product improvements.

Abercrombie & Fitch

An American lifestyle retailer that focuses on casual wear for young consumers, known for its distinctive brand image and marketing strategies.

Market Segment

A distinct group of consumers within a broader market who share similar needs, preferences, or characteristics that a company targets with specific products or marketing strategies.