1. IF a personal-use asset is contributed to a partnership for business use, the partnership’s basis in the asset is always:

____a. $0.

____b. The FMV of the asset at the date of contribution.

____c. The basis of the asset at the date of contribution.

____d. The lesser of the asset’s FMV or basis at the date of contribution.

2. Section 179 expense is reported as a (an):

_____a. ordinary deduction to a partnership.

_____b. separately stated item.

_____c. Both as an ordinary deduction and as a separately stated item.

_____d. Capital loss to the partnership.

3. The general rule regarding income and expense items of a partnership and their classification is all income and expense items of a partnership:

_____a. Are treated as ordinary income / expense items.

_____b. That may be treated differently at the partner level must be “separately stated.:

_____c. Are treated as separately stated items.

_____d. Are treated as capital income or losses.

Answer rating: 100% (QA)

1 b The FMV of the asset at ... View the full answer