Final answer:
Adjusting a partner's basis for tax-exempt income does indeed prevent double taxation, confirming the statement as true. The exercises provided relate to historical facts and interpretations essential to understanding American history and its governmental principles. option (A)
Step-by-step explanation:
Adjusting a partner's basis for tax-exempt income is a measure to prevent double taxation. This is because tax-exempt income increases a partner’s basis in the partnership, which will decrease taxable gain (or increase loss) on the eventual sale of the partnership interest, thereby ensuring that the income is not taxed again at the individual level. Thus, the statement is True.
Similarly, the questions provided from various exercises all pertain to historical facts and interpretations related to taxation, the Three-Fifths Compromise, the necessary and proper clause, market revolution, religious toleration, sharecropping, the Louisiana Purchase, and distinctions in colonial tax laws. These reflect critical aspects of American history and government functioning.