When Must a Partnership Make Mandatory Basis Adjustments

question 68

Multiple Choice

When must a partnership make mandatory basis adjustments?

• A) on any sale of a 20% or greater partnership interest
• B) on any sale of a partnership interest where the partnership's adjusted basis in its assets exceeds their fair market value by $250,000 or more
• C) on any sale of a partnership interest for $250,000 or more
• D) on any distribution of assets with a value of $250,000 or more

---

Definitions:

Consolidate Power

Refers to the process by which a leader, government, or organization increases its control over decision-making and authority, often at the expense of others' participation.

Divine Beings

Spiritual or celestial entities believed in many religions and mythologies to have powers beyond those of ordinary humans and to influence the natural world and human fate.

John Calvin's Theology

A framework of Christian theological thought developed by John Calvin that emphasizes the sovereignty of God, predestination, and the absolute depravity of human beings, forming the basis for Calvinism.

Martin Luther

A German professor of theology, composer, priest, monk, and a seminal figure in the Protestant Reformation who fundamentally challenged the teachings and practices of the Roman Catholic Church.