Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) The Hunter Partnership has a net long-term capital gain of $4,000 and a net short-term capital loss of $1,000 for the current tax year. The gain and loss will be netted and the partners will include their proportionate share of the $3,000 net long-term capital gain on their return.
B) The Right Partnership sells a delivery truck and recognizes a gain of $2,000, which represents depreciation recaptured under Sec. 1245. The $2,000 gain will retain its identity as a separately stated item.
C) For tax purposes, the partnership takes a carryover basis in the contributed property that references the contributing partner's basis.
D) All of the above are false.