Which One of the Following Is a True Statement Regarding

question 39

Multiple Choice

Which one of the following is a true statement regarding the allocation of partnership debt among the partners for purposes of calculating basis?

• A) No debt is allocated to LLC members because they are not liable for entity debts.
• B) Nonrecourse debt is not allocated to general partners unless they personally guarantee the debt.
• C) In a limited partnership, debt is only allocated to general partners.
• D) In a limited liability partnership, debt is allocated among the managing partners, but not the partners with "limited liability."
• E) For basis purposes, partnership debt is allocated among the partners even if no partner is personally liable for the debt.

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Definitions:

Inner Cell Mass

The mass of cells inside the embryonic blastocyst, from which the embryo and eventually the fetus develop.

Endoderm

Cells of the inner cell mass of the embryo that develop into the digestive system and the lungs.

Ectoderm

Cells of the inner cell mass of the embryo that develop into the outer surface of the skin, the nails, part of the teeth, the lens of the eye, the inner ear, and the central nervous system.

Embryonic Period

The period that extends from the time the organism becomes attached to the uterus until the end of the 8th week of pregnancy, when all the major organs have taken primitive shape.