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.

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Definitions:

Ad-

A prefix meaning toward or in the direction of, often used in medical terms.

Prefix

An affix placed before the stem of a word to alter its meaning or create a new word, for example, 'pre-' in 'preview'.

Prefix

An affix placed before a word to modify its meaning.

Abd

An abbreviation frequently used in healthcare and medical imaging to refer to the abdomen or abdominal area.