Final answer:
Allocating $40,000 of ordinary income to Partner A in a partnership agreement is not an example of a separately stated item; it is rather a part of the routine division of profits and losses. Therefore, the given statement is false.
Step-by-step explanation:
The statement that the partnership agreement might provide, for example, that the first $40,000 of ordinary income is allocated to Partner A and that allocating income in this manner is an example of a separately stated item is false. Separately stated items are those which are passed through to the partners separately from the ordinary income because they can affect the partners' tax outcomes differently, such as capital gains, charitable contributions, or deductions. An allocation of ordinary income, such as the $40,000 to Partner A, is part of the standard division of profits and losses according to the partnership agreement but is not a separately stated item.