Exam 3 -...

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Chapter 9 : Chapter 22: Federal Estate Tax, Federal Gift Tax, and Generation- Skipping Transfer Tax - CCH Test 3 chapters 20,21,22 Save Answers Submit For Grade Time Remaining: 02:19:38 1. A partner's interest in a partnership is a capital asset. (Points :1) True False 2. As a general rule, property distributed to a partner, not in liquidation of an interest in the partnership, takes the same basis in the hands of the partner as it had in the hands of the partnership. (Points :1) True False 3. A partnership may elect to adjust the basis of its property merely because one partner sells an interest to another partner and there is no transfer of any partnership assets involved. (Points :1) True False 4. A pro rata distribution of unrealized receivables or substantially appreciated inventory items will merely take the basis to the distributee as that property had to the partnership (limited to the partner's basis), and any ordinary income recognition is deferred until the collection or other taxable disposition of the receivables or inventory items. (Points :1) True False 5. A partner who sells an interest in a partnership with substantially appreciated inventory will have to recognize ordinary income on the sale. (Points :1) True False 6. A corporation with more than 50 shareholders will not qualify for the S election. (Points :1) True False 7. When a partner acquires an interest in a partnership by purchase, the basis of the underlying assets of the partnership must be adjusted to reflect the price the incoming partner paid for his interest. (Points :1) http://exams.next.ecollege.com/Main/Exams/StudentLoadSectio. .. 1 of 8 7/19/09 1:44 AM
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True False 8. With respect to the allocation of a basis adjustment to partnership assets, the total fair market value of all of the assets is compared with the total adjusted basis of those same assets and the difference between the two amounts is allocated to each asset based upon its relative adjusted basis. (Points :1) True False 9. If, in anticipation of current profits, a partner withdraws all of his or her share of partnership profits, and then dies before the end of the taxable year of the partnership, the estate (or other successor in interest) will have to report the deceased partner's profits as its income in its year with or within which the partnership year ends, notwithstanding the fact that the money representing those profits was received and squandered by the decedent prior to death. (Points :1) True False 10. A partner who sells an interest in a partnership with substantially appreciated inventory will have to recognize ordinary income on the sale. (Points :1) True False 11. Gift taxes paid on post-1976 gifts are generally allowed as a credit against the tentative estate tax. (Points :1)
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Exam 3 -...

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