True False 1. A loss is recognized when assets are transferred to a partnership with a fair value less than basis. 2. A partner will have taxable income equal to the fair value of services he/she renders to the partnership each year 3. Cash withdrawals from a partnership can reduce partner's basis below zero. partnership assets partner will recognize immediate loss. nothing else he/she will recognize a 50,000 loss will recognize gain on face amount of the accounts receivable distributed. If they become 4. Accounts receivable would not be considered "hot assets" in an accrual based S. In liquidation of a partnership if outside basis exceeds inside basis of cash and other 6. On liquidation if a partner has a basis of 100,000 and receives cash of 50,000 and 7. When accounts receivable are distributed to a partner in a cash based entity, the partner uncollectable he can the take a business loss