Identify Which of the Following Statements Is True

question 57

Multiple Choice

Identify which of the following statements is true.

• A)A contribution of services for a partnership interest is a tax-free transaction.
• B)For federal income tax purposes, formation of a partnership is governed by Sec. 721.
• C)When a partnership assumes a liability on property contributed by a partner, the only effect on the contributing partner's basis in his or her partnership interest is that his or her basis will be increased by the amount of the liability assumed by the other partners.
• D)All of the above are false.

---

Definitions:

Cathect

To invest emotional energy into a person, object, or idea.

Transference Neurosis

A phenomenon in psychoanalysis where patients project feelings, attitudes, or desires onto the therapist that actually stem from previous relationships in their lives.

Standard Psychoanalysis

A therapeutic method developed by Freud focusing on uncovering unconscious conflicts and motivations through techniques like dream analysis and free association.

Blank Screen

A therapeutic technique where the therapist remains neutral and refrains from disclosing personal views, encouraging patients to project their feelings or thoughts unconsciously.