What Is the Correct Order for Applying the Following Three

question 83

Multiple Choice

What is the correct order for applying the following three items to adjust a partner's tax basis in his partnership interest: (1) Increase for share of ordinary business income, (2) Decrease for share of separately stated loss items, and (3) Decrease for distributions?

• A) 1, 3, 2.
• B) 3, 1, 2.
• C) 2, 3, 1.
• D) 1, 2, 3.

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Definitions:

Classical Conditioning

An educational process in which a response originally produced by a second stimulus is ultimately triggered by the first stimulus alone, due to the repeated pairing of two stimuli.

Neon Green Beverage

A brightly colored drink, often flavored and appealing to the eye, but not specifically indicative of any particular type or brand.

Behaviorist

A person who specializes in behaviorism, a branch of psychology that focuses on observable behaviors and the processes of learning through conditioning.

Response Tendencies

The habitual ways in which individuals react to different situations or stimuli, often based on past experiences or personality.