Which of the following statements is always correct regarding assets acquired by a newly-formed partnership? If a partner contributes:
a. Equipment that is depreciable trade or business property (in the partner’s hands): the partnership treats the property as new property, and may claim a § 179 deduction.
b. Unrealized (in the cash-basis partner’s hands) receivables: the partnership will report ordinary income when the receivable is collected.
c. Inventory (in the partner’s hands): the partnership reports ordinary income whenever the property is sold, even if the property is an IRC § 1231 asset of the partnership.
d. Depreciable equipment used by the partnership in its business: gain or loss on the sale of the property receives IRC Section 1231 treatment.
e. (b) and (c) are both correct.
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