A partnership has accounts receivable with a basis of $0 and a fair market value of $30,000 and depreciation recapture potential of $20,000. All other assets of the partnership are either cash, capital assets, or 1231 assets. If a purchaser acquires a 40% interest in the partnership from another partner, the selling partner is required to recognize ordinary income of $12,000.

Group of answer choices

False

True