Identify Which of the Following Statements Is True

question 67

Multiple Choice

Identify which of the following statements is true.

• A)A partner's relief of debt is treated as if the partner receives a cash distribution.
• B)When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
• C)Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
• D)All of the above are false.

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Definitions:

Tort Action

A lawsuit instigated by an individual who has suffered harm due to another's wrongful act, aiming to obtain a remedy such as monetary compensation.

Hearsay Evidence

Evidence presented in court based on what the witness has heard someone else say, rather than on direct personal knowledge.

Substantive Law

The set of laws that governs how members of a society are to behave. It defines rights and responsibilities in civil law, and crimes and punishments in criminal law.

Private Law

The rules that govern our personal, social, and business relations, which are enforced by one person’s suing another in a private or civil action