34. Which one of the following statements regarding partnership taxation is incorrect? A. A partnership is not a taxable entity for Federal income tax purposes.B. Partnership income is comprised of ordinary partnership income or loss and separately stated items.C. A partnership is required to file a return with the IRS.D. A partner’s profit-sharing ratio equals the partner’s loss-sharing ratio.E. All of these statements are correct.
35. On a partnership’s Form 1065, which of the following statements is nottrue? 36. Which of the following isa correct definition of a concept related to partnership taxation? 37. A partnership will take a carryover basis in an asset it acquires when: 38. On January 1 of the current year, Jenna and Rob form an equal partnership. Jenna makes a cash contributionof $80,000 and a property contribution (adjusted basis of $120,000; fair market value of $160,000) in exchange for her interest in the partnership. Rob contributes property (adjusted basis of $190,000; fair market value of $240,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation? A. Jenna has a $200,000 tax basis for her partnership interest.B. Rob recognizes a $50,000 gain on his property transfer. C. Rob has a $240,000 tax basis for his partnership interest.D. The partnership has a $160,000 adjusted basis in the property contributed by Jenna. E. None of the statements is true.
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- Spring '08
- Corporation, Types of business entity, partner, Limited liability partnership