Prentice Hall's Federal Taxation 2013 Corporations

Prentice Hall's Federal Taxation 2013 Corporations, 26e (Pope)

Chapter C10 Special Partnership Issues

1) A partnership cannot recognize a gain or loss on a current distribution.
Answer: FALSE
Page Ref.: C:10-2
Objective: 1

2) If a partnership asset with a deferred precontribution gain is distributed within seven years of acquisition in a nonliquidating distribution to a partner who did not contribute the asset, the precontribution gain must be recognized by the contributing partner.
Answer: TRUE
Page Ref.: C:10-2
Objective: 1

3) In a current distribution, the partner's basis in the partnership interest is reduced by the amount of money received and by the partnership's bases in the distributed property.
Answer: TRUE
Page Ref.: C:10-4
Objective: 1

4) A partner's holding period for property distributed as a current distribution begins on the date of distribution.
Answer: FALSE
Page Ref.: C:10-7
Objective: 2
5) Under Sec. 751, unrealized receivables include potential Section 1245 or 1250 recapture on the partnership's depreciable property.
Answer: TRUE
Page Ref.: C:10-8
Objective: 2

6) For Sec. 751 purposes, "substantially appreciated inventory" means property held for sale to customers whose market value exceeds its adjusted basis.
Answer: FALSE
Page Ref.: C:10-8
Objective: 2

7) A partner can recognize gain, but not loss, on a liquidating distribution.
Answer: FALSE
Page Ref.: C:10-12
Objective: 3

8) A partner's holding period for a partnership interest is never considered when determining the holding period for property distributed in a liquidating distribution.
Answer: TRUE
Page Ref.: C:10-14
Objective: 2

9) The sale of a partnership interest always results in capital gain or loss rather than ordinary income.
Answer: FALSE
Page Ref.: C:10-16 and C:10-17
Objective: 3

10) When a retiring partner receives payments that exceed the value of that partner's partnership property, the excess payment is a guaranteed payment.
Answer: