Which of the Following Distributions Would Never Result in Gain

question 61

Multiple Choice

Which of the following distributions would never result in gain recognition to the recipient partner?

• A)A distribution of cash that follows a contribution of appreciated property to the partnership.
• B)A distribution of a slightly appreciated marketable security.
• C)A distribution of property to a partner who, three years ago, contributed other property with a built-in gain.
• D)A distribution to a second partner of property contributed by the first partner two years ago.
• E)A proportionate distribution of inventory property.

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