Which of the Following Statements About Partnerships Is True

question 25

Multiple Choice

Which of the following statements about partnerships is true?

• A)Partnerships must file their tax returns on a calendar year basis.
• B)No gain or loss is ever recognized in transactions between partners and a partnership.
• C)Gain is never recognized by a partner on a contribution of property to a partnership.
• D)A partner's original basis in a partnership interest is equal to the basis of the property transferred (plus cash contributed) to the partnership, adjusted for any gain recognized on the transfer and reduced for liabilities assumed by the other partners.
• E)The partnership's basis in property contributed by a partner is equal to the fair market value of the property on the date of the transfer.

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Definitions:

Unconscious Preparation

The process in which individuals unconsciously prepare themselves for future tasks or decisions through indirect learning and experiences.

Fight or Flee

A physiological response to perceived harm or threat, triggering a choice to confront the danger or escape from it.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Ego-Ideal

A component of the personality in psychoanalytic theory, consisting of the idealized self-image and values adopted from one's parents and society.