Which of the Following Statements Regarding the Sec

question 130

Multiple Choice

Which of the following statements regarding the Sec.754 adjustment is incorrect?

• A)Sec.754 permits a basis adjustment to partnership assets upon the sale of a partnership interest.
• B)Sec.754 permits a basis adjustment to partnership assets upon certain distributions.
• C)The Sec.754 election is made annually by the partnership.
• D)The Sec.754 election is intended to prevent inequities that may occur when the bases of partnership assets are not adjusted.

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