Which of the Following Statements Is Always Correct Regarding Assets

Multiple Choice

Which of the following statements is always correct regarding assets acquired by a newly formed partnership? If a partner contributes:

A) Depreciable property: the partnership treats the property as newly acquired depreciable property, and may claim a § 179 deduction.
B) Unrealized (cash-basis) receivables: the partnership will report a capital gain when the receivable is collected.
C) Inventory (in the partner's hands) : the partnership reports ordinary income if the property is held as a capital asset and sold within five years of the contribution date.
D) Land valued at less than its basis: the partnership reports a § 1231 loss if the property is sold at a loss.