Which of the Following Is a Valid Reason for Making

question 59

Multiple Choice

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

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

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Definitions:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a United States federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Computer Crime

Refers to criminal activity where a computer or network is the source, tool, target, or place of a crime.

Mens Rea

A legal term referring to the criminal intent or state of mind of an individual committing a crime, essentially the mental aspect of a crime.

Fourth Amendment

Part of the U.S. Constitution that protects citizens against unreasonable searches and seizures, requiring any warrant to be judicially sanctioned and supported by probable cause.