Which of the Following Is Valid Reason for Making a 754

question 57

Multiple Choice

Which of the following is valid reason for making a 754 election?

• A)An incoming partner pays more for a partnership interest that his or her proportionate share of partnership assets.
• B)Partners are able to increase their basis in the partnership interest upon the sale of a partnership interest.
• C)Partnerships can increase,but not decrease,their basis in partnership assets.
• D)A partnership can reduce its basis in assets upon cash distributions to partners.

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Definitions:

Common Carrier

A business or service that offers to transport goods or people for anyone willing to pay, under a regulatory or legal obligation to do so without discrimination.

Delivery Contract

A legal agreement specifying the terms of delivery for goods or services from a seller to a buyer.

Goods-In-Bailment

A legal term referring to the temporary transfer of possession of personal property by one party to another, with the intent that the property will be returned.

Risk Of Loss

Risk of loss refers to the responsibility for damage or destruction of goods, determining which party bears the financial burden should goods be damaged during a transaction.