Which of the Following Statements Is True Regarding Partnership Operating

question 66

Multiple Choice

Which of the following statements is true regarding partnership operating distributions?

• A) If a partner's outside basis is greater than the bases of the assets distributed in an operating distribution, the partner will recognize a loss.
• B) If a partner's outside basis is less than the bases of the assets distributed in an operating distribution, the partner will recognize a loss.
• C) If a partner's outside basis is greater than the bases of the assets distributed in an operating distribution, the partner will recognize a gain.
• D)None of these statements is true.

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Definitions:

Variance

A statistical measure of the dispersion or spread in a set of data points, showing how far each number in the set is from the mean.

Coefficient Of Correlation

A statistical measure that calculates the strength of the relationship between the relative movements of two variables, represented typically by the Pearson correlation coefficient value.

Stocks

Shares in the ownership of a company, representing a claim on the company's assets and earnings.

Composed

Pertains to being made up of several parts or elements.