Section 721 Provides That No Gain or Loss Is Recognized

question 31

True/False

Section 721 provides that no gain or loss is recognized on contribution of property to a partnership in exchange for an interest in the partnership. A disguised sale is an exception to nonrecognition of gain or loss under § 721.

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Definitions:

Viscosity

The sheer resistance of a liquid often used to mean oil thickness or resistance to flow.

Ground Circuit

An electrical circuit that uses the earth as a part of its conductive path, enhancing safety by preventing electric shock.

Insulated Circuit

The positive side of a chassis, negative ground electrical circuit. When testing voltage drop on the insulated circuit of a cranking system, total voltage drop should not exceed 0.5 volt in most 12-volt systems.

Voltage Drop Testing

A diagnostic method to measure the voltage loss in a circuit under load, identifying potential issues within the electrical system.