Statements regarding disproportionate distributions


Question: Which of the following statements regarding disproportionate distributions is false? Multiple Choice A disproportionate distribution occurs when a partner receives more than his proportionate share of the partnership's hot assets. A disproportionate distribution occurs when a partner receives less than his proportionate share of the partnership's hot assets. The tax provisions related to disproportionate distributions attempt to preserve the partners' share of ordinary income potential. Disproportionate distributions will only occur in liquidating distributions.

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Accounting Basics: Statements regarding disproportionate distributions
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