In a current (nonliquidating) distribution, loss never is recognized by the partnership.

True

False

Julie provides legal services worth $15,000 in exchange for a 10% capital interest in partnersip XYZ LP. Per IRC 721, Julie and XYZ LP will not recognize gain on the exchange.

True False

A partner's outside basis in a partnership will always be equal to the partner's tax capital account.

True False

A trust cannot be a shareholder of an S Corporation.

True False

A partner will recognize gain when receiving a distribution of property in excess of his or her outside basis.

True False

It is possible for a partnership to use the cash method of accouting, even if one of the partners is a corporation with average anuual receipts of $28 million.

True False