Which of the following statements is generally correct regarding the tax treatment of unencumbered assets...
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Accounting
Which of the following statements is generally correct regarding the tax treatment of unencumbered assets contributed to a partnership?
Select one:
a.
Per IRC Section 721, no gain or loss shall be recognized to a partnership or to any of its partners in the case of a sale of property to the partnership.
b.
Per IRC Section 721, no gain or loss shall be recognized to a partnership or to any of its partners in the case of an exchange of property for a partnership interest.
c.
Per IRC Section 721, no gain or loss shall be recognized to a partnership in the case of an exchange of property for a partnership interest, but the exchanging partner will recognize gain or loss on contribution of the property.
d.
Per IRC Section 721, no gain or loss shall be recognized to a partnership and the contributing partner in the case of an exchange of property for a partnership interest, but the non-exchanging partners will recognize gain to the extent of their share of the value of contributed property.
e.
None of the above.
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