_____ When a Partner Withdraws from a Partnership, the Determination

Multiple Choice

_____ When a partner withdraws from a partnership, the determination of the withdrawing partner's gain or loss for income tax-reporting purposes is made by comparing:

A) (1) The partner's proceeds with (2) the balance in his or her capital account.
B) (1) The amount of cash received with (2) his or her tax basis.
C) (1) The partner's capital balance with (2) his or her share of existing partnership liabilities for which he or she is relieved of responsibility.
D) (1) The partner's proceeds plus his or or her share of existing partnership liabilities for which he or she is relieved of responsibility with (2) his or her tax basis.
E) (1) The partner's tax basis plus his or her share of existing partnership liabilities for which he or she is relieved of responsibility with (2) his or her proceeds.