Which of the Following Statements Is Correct

question 98

Multiple Choice

Which of the following statements is correct?

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