Identify Which of the Following Statements Is False

question 36

Multiple Choice

Identify which of the following statements is false.

• A)A sale or exchange of at least 50% of the capital and profits interest in a partnership within a 12- consecutive-month period will terminate the partnership and end all of the partnership's elections.
• B)When using the 50% rule to terminate a partnership, if an interest is sold more than once during the 12-month period, each sale is counted separately.
• C)A partner's individual income tax return, under some circumstances, may include the results of partnership operations for a period exceeding 12-months.
• D)When several different transfers are made during a 12-month period, the partnership termination occurs on the date of the transfer that first crosses the 50% threshold.

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Definitions:

Coin Flip

A basic form of randomness used as a method for making a decision, characterized by an equal probability of landing on heads or tails.

Probability

An estimate of the probability that a specific event will take place.

Tails

The term used to refer to the rear or back end of an animal's body, or in coin flipping, the side of the coin not displaying the head.

Raffle

A means of raising money by selling numbered tickets, one or more of which are subsequently drawn at random, the holder or holders of such tickets winning a prize.