When Property Is Contributed to a Partnership for a Capital

question 143

Multiple Choice

When property is contributed to a partnership for a capital and profits interest, the holding period of the contributing partner's interest:

• A)Always starts the day after the contribution date.
• B)Always starts the day the property was contributed.
• C)May include the holding period of the contributed property.
• D)Never includes the holding period of the contributed property.
• E)None of the above.

---

Definitions:

Customer Purchase

A transaction where a customer acquires goods or services from a business.

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring compliance with the matching principle.

Condensed Worksheet

A summarized form of a financial worksheet used for internal management purposes.