Which of the Following Is a Valid Reason for Making

question 51

Multiple Choice

Which of the following is a 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.

---

Definitions:

Visual Cliff

A psychological experiment setup to test infants' and young animals' perception of depth and their ability to perceive visual drop-offs.

Gibson and Walk

Psychologists known for the "visual cliff" experiment, which studied depth perception and fear of falling in infants.

Cochlear Implants

Electronic medical devices that replace the function of the damaged inner ear by providing sound signals directly to the brain.

Born Deaf

Refers to individuals who are deaf from birth, often due to genetic factors or complications during pregnancy or birth.