If a Partnership Asset with a Deferred Precontribution Gain Is

question 84

True/False

If a partnership asset with a deferred precontribution gain is distributed within seven years of acquisition in a nonliquidating distribution to a partner who did not contribute the asset, the precontribution gain must be recognized by the contributing partner.

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Definitions:

Bakers' Company

An organization or guild historically associated with bakers, often involved in regulating the baking trade.

Check Register

A record maintained by account holders to track checks written, deposits made, and current balances.

Deposit

A sum of money placed into an account or given to another party as a part of a financial transaction.

Check Register

A check register, also known as a cash disbursements journal, is used to keep track of financial transactions, specifically outflows, associated with a bank account.