Bob received a proportionate nonliquidating distribution of land from the BZ Partnership. The land had a fair market value of $15,000 and a basis to the partnership of $10,000 . The land was held for investment purposes by the partnership. Bob's basis in his partnership interest immediately before the distribution was $6,000 . If the partnership has a ยง 754 election in effect, it will record a
$4,000 step-down in the basis of remaining assets, and the step-down will be attributed to all partners in the partnership.
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: A decrease in the basis of a distributed asset can be compensated for by an increase in the basis of remaining partnership assets.
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Which channel of distribution is best for perishable products like bananas?
a. producer to consumer b. producer to retailer to consumer c. producer to wholesaler to retailer to consumer d. producer to agent to consumer e. producer to wholesaler to consumer
Ricardo Corporation uses the FIFO method in its process costing system. During June, 36,000 units were completed in Department M. Of this total, 6,000 were in the beginning work in process and the remainder were started and completed during the month. The work in process at June 1 was 40% complete with respect to conversion costs. Materials are added at the beginning of the process. A total of 8,000 units were in work in process at June 30; these units were 80% complete with respect to conversion costs. The equivalent units of production for conversion costs for June is closest to:
A. 32,800 units B. 36,400 units C. 33,600 units D. 40,000 units
Fire, theft, and windstorm damage are examples of
A) perils. B) hazards. C) miscellaneous mishaps. D) liabilities.
Which of the following is not true of common stock?
A) Common stock represents partial ownership in the firm. B) Common stock is riskier than preferred stock. C) Investors in common stock are given voting rights. D) Investors in common stock are guaranteed a dividend.