What conditions are required for a partner to recognize a loss upon receipt of a distribution from

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 What conditions are required for a partner to recognize a loss upon receipt of a distribution from a partnership?



A.

A partner can recognize a loss on a distribution from a partnership that is fully liquidating. The distribution can consist of any form of money or property, where the sum of all of the distributions is more than the sum of all of the partner's bases in the partnership.



B.

A partner can recognize a loss on a distribution only if it is a liquidating distribution consisting of any form of money or property, where the sum of the distributions is less than the partner's predistribution basis in his or her partnership interest.



C.

A partner can recognize a loss on a distribution from a partnership when loss property is distributed to the partner. Loss property is determined by comparing the FMV at the date of distribution and the basis of the property on the partnership's books.



D.

A partner can recognize a loss on a distribution only if it is a liquidating distribution consisting of money, unrealized receivables, and/or inventory and the sum of these amounts is less than the partner's predistribution basis in his or her partnership interest.

 

 
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