Which of the following statements is true regarding, Financial Management

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Which of the following statements is true regarding

Which of the following statements is true regarding partnership operating distributions?

1. Partners will never recognize a gain on an operating distribution.

2. Partners receiving a distribution of property other than money will take a basis in the property equal to its fair market value.

3. Partners will never recognize a loss on an operating distribution.

4. None of the statements are true.

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