1.In a general partnership all the partners are classified as "general partners," each of whom has unlimited liability for the debts of the partnership.

True/False

2.The partnership's beginning tax basis in property it receives from a partner in exchange for an interest in partnership capital is the contributing partner's adjusted basis in the property.

True/False

3. As a general rule, when a person obtains an interest in partnership capital through rendition of services, ordinary income is recognized to the extent of the fair market value of the interest received.

True/False

4.A partner owns a 50-percent interest in a partnership. For the partnership tax year ended December 31, Ishpeming reports the following items of partnership income, gain, loss, deduction, and credit.

Gross sales $400,000

Cost of goods sold 220,000

Wages 100,000

Net Section 1231 gain 50,000

Casualty loss 10,000

Interest 5,000

Depreciation 20,000

Business bad debt 5,000

Charitable contributions 5,000

Calculate the partners distributive shares of (1) partnership income or loss and (2) separately stated items.