True/False Indicate whether the statement is true or false. 1. If the buyer assumes the seller's liability on the property acquired, the seller's amount realized is decreased by the amount of the liability assumed. a. True b. False 2. Jack owns a 10% interest in a partnership (not real estate) in which his at-risk amount is $42,000 at the beginning of the year. During the year, the partnership borrows $80,000 on a nonrecourse note and incurs a loss of $60,000 from operations. Jack's at-risk amount at the end of the year is $44,000. a. True b. False 3. A cash distribution from a partnership to a partner generally is taxable to the partner. a. True b. False