Match Each of the Following Statements with the Terms Below

question 70

Multiple Choice

Match each of the following statements with the terms below that provide the best definition.
-Economic effect test

• A)Adjusted basis of each partnership asset.
• B)Operating expenses incurred after entity is formed but before it begins doing business.
• C)Each partner's basis in the partnership.
• D)Reconciles book income to taxable income.
• E)Tax accounting election made by partnership.
• F)Tax accounting calculation made by partner.
• G)Tax accounting election made by partner.
• H)Does not include liabilities.
• I)Designed to prevent excessive deferral of taxation of partnership income.
• J)Amount that may be received by partner for performance of services for the partnership.
• K)Theory under which a partnership's recourse debt is shared among the partners.
• L)Will eventually be allocated to partner making tax-free property contribution to partnership.
• M)Partner's share of partnership items.
• N)Must generally be satisfied by any allocation to the partners.
• O)Justification for a tax year other than the required taxable year.
• P)No correct match is provided.

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Definitions:

Flex Wrist

The action of bending the wrist or moving the palm of the hand towards the forearm.

Extend Elbow

The motion of increasing the angle between the forearm and the upper arm, straightening the arm.

Radial

Pertaining to the radius bone or the radial artery, often relating to the lateral aspect of the forearm or positioning towards the radius.

Musculocutaneous

Pertaining to both muscle and skin, often used to describe nerves or tissues that interact with or relate to both muscle and skin functions.