If a Partner Contributes Inventory to the Partnership in Exchange

question 34

True/False

If a partner contributes inventory to the partnership in exchange for a partnership interest,the holding period for the partnership interest begins on the date the inventory was acquired by the transferor partner.

---

Definitions:

Base-Year Prices

Prices from a specific base year used to express the real value of goods and services in order to remove the effects of inflation over time.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Annual Rate

A projection of a rate over a period of one year, often used in the context of interest rates, inflation, or growth rates.

Price Index

A measure showing the average level of prices for a specific set of goods and services over a period, indicating inflation or deflation.