Identify which of the following statements is true.
A. Unrealized receivables include rights to payments on the sale of a capital asset.
B. The primary purpose of Sec. 751 is to prevent partnerships from converting capital gains into ordinary income.
C. If a partner sells property received in a partnership distribution for a gain and the property was inventory in the hands of the distributing partnership, the partner will always recognize ordinary income.
D. All of the above are false.
Answer: D
You might also like to view...
Equity-based valuation models are based on all metrics except
a. dividends b. cash flow c. working capital d. earnings
The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations into categories based on the organization’s:
a. purposes, activities, and programs. B. budget and staff. C. mission and vision statements. D. type of clients served.
The Jeep brand of vehicles provides consumers with a unique blend of freedom and adventure. One of its advertising campaigns featured the tagline Have fun out there. Jeep. to highlight how the Jeep brand is about being free and adventuresome. This unique set of associations that consumers will make with the Jeep brand is referred to as brand
A. equity. B. awareness. C. recognition. D. image. E. marking.
The delivery lead time was highly variable as was the quality of the product being shipped. These two factors combined to contribute to the waste of:
A) unnecessary transportation. B) unnecessary inventory. C) unnecessary motion. D) waiting.