43) Identify which of the following statements is true A The basis for property distributed by a partnership cannot be increased above the carryover basis amount when it is received by a partner in a nonliquidating distribution B A partner's partnership capital account balance cannot be less than zero C The length of time a partner owns a partnership interest is relevant when determining the holding period for distributed property D All are false 44) Identify which of the following statements is true A If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner B All are false C When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated D The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution 45) The total bases of all distributed property in the partner's hands following a nonliquidating distribution is limited to A the partner's predistribution basis in his partnership interest B the predistribution FMV of the partner's partnership interest C the partnership's bases in the distributed property D the FMV of the property distributed 46) Identify which of the following statements is false A A C corporation short year income tax liability must be determined on an annualized basis B A corporation can obtain relief for a late S election if the IRS consents C If an S election is terminated and the termination is not considered to be inadvertent, a 10 tax year waiting period is required before making a new election D If the termination of an S election is considered to be inadvertent, then the election is permitted to continue in place as if the termination had never occurred 47) Identify which of the following statements is true A All of the shareholders of an S corporation must consent to a revocation of the S election B A revocation of an S corporation election can be retrospective to any date C An S election will not be terminated due to excess passive income if the corporation does not have Subchapter C E P D All are true 48) On June 30 of the current year, the S election of Great Corporation is terminated thus creating a 6 month S short year and a 6 month C short year Great Corporation is a calendar year taxpayer The S short year return is due A September 15 B June 30 of the next year C March 15 of the next year D December 15

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43) Identify which of the following statements is true. A. The basis for property distributed by a partnership cannot be increased above the carryover basis

43) Identify which of the following statements is true.

	A. The basis for property distributed by a partnership cannot be increased above the carryover basis amount when it is received by a partner in a nonliquidating distribution.
	B. A partner's partnership capital account balance cannot be less than zero.
	C. The length of time a partner owns a partnership interest is relevant when determining the holding period for distributed property.
	D. All are false.

44) Identify which of the following statements is true.

	A. If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner.
	B. All are false.
	C. When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated.
	D. The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution.

45) The total bases of all distributed property in the partner's hands following a nonliquidating distribution is limited to

	A. the partner's predistribution basis in his partnership interest
	B. the predistribution FMV of the partner's partnership interest
	C. the partnership's bases in the distributed property
	D. the FMV of the property distributed

46) Identify which of the following statements is false.

	A. A C corporation short year income tax liability must be determined on an annualized basis.
	B. A corporation can obtain relief for a late S election if the IRS consents.
	C. If an S election is terminated and the termination is not considered to be inadvertent, a 10-tax-year waiting period is required before making a new election.
	D. If the termination of an S election is considered to be inadvertent, then the election is permitted to continue in place as if the termination had never occurred.

47) Identify which of the following statements is true.

	A. All of the shareholders of an S corporation must consent to a revocation of the S election.
	B. A revocation of an S corporation election can be retrospective to any date.
	C. An S election will not be terminated due to excess passive income if the corporation does not have Subchapter C E&P.
	D. All are true.

48) On June 30 of the current year, the S election of Great Corporation is terminated thus creating a 6-month S short year and a 6-month C short year. Great Corporation is a calendar-year taxpayer. The S short year return is due