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A loss on property distributed by a partnership in liquidation is A. Recognized regardless of property distributed. B. Characterized as if from the sale

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A loss on property distributed by a partnership in liquidation is A. Recognized regardless of property distributed. B. Characterized as if from the sale of a capital asset. C. Limited to any excess of the adjusted basis in partnership interest over the sum of (1) money and (2) the adjusted basis in unrealized receivables, inventory, and prepaid expenses. D. Always realized, but never recognized.

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