Question: QUESTION 4 3 On December 3 1 , an LLC taxed as a partnership sells accounts receivable that were contributed by a partner as a

QUESTION

43

On December

31,

an LLC taxed as a partnership sells accounts receivable that were contributed by a partner as a capital contribution and had not yet been collected at the time of contribution. What is the character of the gain on sale?A

.

Long

-

term capital gainB. Ordinary incomeC. Section

1231

gainD. Tax

-

exempt incomeE. None of these

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