Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A)A partnership may make an annual election to adjust the basis of its assets upon the sale of a partnership interest.
• B)The Sec. 754 election applies to both sales and distributions.
• C)The Sec. 754 election applies to only current and nonliquidating distributions.
• D)A partnership can revoke a Sec. 754 election every 5 years.

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Definitions:

Indirect

Referring to something not directly expressed or done in a straightforward way, often used in the context of costs not directly tied to a specific product or service.

Specific Products

Items or goods that have been distinctly identified and described, usually based on unique characteristics or purposes.

Indirect Materials

Materials used in the production process that are not directly traceable to the final product, such as lubricants and cleaning supplies used in machinery.

Used

Previously owned or utilized by someone before its current owner or application.