5. Which of the following items do not retain their character as they flow through to the partnership? More than one answer may be correct. a. Long-term capital gains. b. Short-term capital gains. c. Depreciation recapture income. d. Dividend income.

6. Sal and Nan owned 90% and 10% of the SN Partnership, respectively. SN operated a foundry. Sal sold stock in ExxonMobil with a basis of $4,000 to the partnership for $6,000. The amount and character of gain recognized to Sal is: a. $0. b. $2,000 ordinary. c. $2,000 capital gain. d. $6,000 ordinary.

7. Sal and Nan owned 90% and 10% of the SN partnership, respectively. SN operated a foundry. Sal sold a machine, capital asset to him but to be used in the SN business operations, with a basis of $4,000 to the partnership for $6,000. The amount and character of gain recognized to Sal is: a. $0. b. $2,000 ordinary. c. $2,000 capital gain. d. $6,000 ordinary.

8. Bob and Lyn were equal unrelated partners in the BL Partnership. Bob sold an old truck to the partnership for $3,000. The truck has been used in Bob's sole proprietorship prior to the sale. It had a basis of $5,000 to Bob. What amount and character of loss should Bob recognize? a. $0. b. $2,000 1231 loss. c. $2,000 ordinary. d. $5,000 ordinary.

9. Bob and Lyn were unrelated partners in the BL Partnership, Bob owning a 70 percent interest and Lyn all the rest. Bob sold an old truck to the partnership for $3,000. The truck has been used in Bob's sole proprietorship prior to the sale. It had a basis of $5,000 to Bob. What amount and character of loss should Bob recognize? a. $0. b. $2,000 1231 loss. c. $2,000 ordinary. d. $5,000 ordinary.