During the Current Year the Newport Partnership Is Liquidated

question 42

Multiple Choice

During the current year the Newport Partnership is liquidated. Which of the following statements is correct concerning the liquidation of the partnership?
I.If only cash is distributed by the partnership, the partners must recognize a gain but cannot recognize a loss.
II.Gain is recognized only if the amount of cash and property distributed exceeds the partner's basis in the partnership.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Superior

Anatomical term meaning above or closer to the head; also called cranial.

Anatomical Direction

Refers to the terms used to describe the locations and orientations of structures in the body relative to other structures or locations.

Posterior

Anatomical term meaning toward the back of the body. Also called dorsal.

Body Structure

Refers to the organization and arrangement of physical parts of organisms, including their systems, organs, and tissues.