1. True/ False The partnerships holding period for assets contributed to the partnership by a partner begins with the date the assets are contributed.

2. True/False A partners share of liabilities is generally based on her or his economic risk of loss in the case of recourse debt and loss-sharing ratio in the case of nonrecourse debt.

3. True/False A has been a partner in the ABC Partnership for only four months. During the current year, the partnership sold investment land that is purchased six years ago and recognized a $100,000 gain. As distributive share of this gain is a long-term capital gain.

4. True/ False A 70 Percent partner has a $5,000 recognized loss when he sells equipment with a basis of $35,000 to the partnership at its FMV of $30,000.