A Partnership Will Take a Carryover Basis in an Asset

question 79

Multiple Choice

A partnership will take a carryover basis in an asset it acquires when:

• A)The partnership acquires the asset through a § 1031 like-kind exchange.
• B)A partner owning 25% of partnership capital and profits sells the asset to the partnership.
• C)The partnership leases the asset from a partner on a one-year lease.
• D)The partnership acquires the asset from a partner as a contribution to partnership capital under § 721(a).
• E)None of the above.

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Definitions:

Hazardous Waste

Waste material that is dangerous or potentially harmful to our health or the environment.

Preserved Specimen

An organism or biological material that has been conserved through chemical or natural processes for study or display purposes.

Salt Solution

A homogeneous mixture of salt (typically sodium chloride) and water, which can vary in concentration.

Microscope

An instrument used to observe small objects by magnifying them.