Identify Which of the Following Statements Is True

question 74

Multiple Choice

Identify which of the following statements is true.

• A)The contribution of Sec. 1245 property to a partnership triggers recognition of ordinary income by the contributor at the time of the transfer.
• B)A partner may not recognize ordinary income when receiving a capital and profits interest in a partnership in exchange for services.
• C)When a partnership interest is given to a partner in exchange for services, the partnership can deduct or capitalize the FMV of the services, depending on the nature of the services.
• D)All of the above are false.

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Definitions:

Great Cardiac Vein

A vein that runs along the heart's surface, collecting deoxygenated blood from the myocardium.

Anterior Interventricular Branch

An artery that supplies blood to the front of the septum of the heart, part of the coronary circulation.

Oxygen-poor Blood

Blood that has a reduced oxygen content, typically found returning to the heart via the veins.

Interventricular Septa

The thick wall separating the lower chambers (ventricles) of the heart.