Question 6 of 10.

Which of the following statements is true about partnership debt basis?

A. Debt basis only reflects third-party loans.

B. General partners have unlimited liability for partnership debts.

C.Debt basis decreases as the entity takes on more debt.

D. Debt basis is not a component of partnership basis.

Question 7 of 10.

A partner's basis is increased by all of the following, EXCEPT:

A. Partnership assumption of the partner's individual debt.

B. Proportional share of new partnership liability.

C. Capital contributed.

D. Fair market value (FMV) of services performed in exchange for ownership interest