Which of the Following Is Not a Specific Adjustment to the Partners

question 22

Multiple Choice

Which of the following is not a specific adjustment to the partners' basis in the partnership interest?

• A) Increased by contributions the partner made to the partnership.
• B) Decreased by the amount of guaranteed payments shown on the partner's Schedule K-1.
• C) Increased by the partner's share of tax-exempt income.
• D) Decreased by any decrease in the partner's share of partnership liabilities.
• E) Increased by the partner's share of separately stated income items.

---

Definitions:

Courts

Judicial institutions authorized to hear and resolve disputes, applying the law to specific cases.

Tests

Procedures or measures used to assess various attributes or performance often in educational, scientific, or medical contexts.

Assignment

The process of handing over obligations, property, or rights from one entity to another.

Delegation

The assignment of authority or responsibilities to another person, often from a superior to their subordinate.