Which of the Following Is False Concerning Special Basis Adjustments

question 31

Multiple Choice

Which of the following is false concerning special basis adjustments under Section 754?

• A)Special basis adjustments are intended to eliminate discrepancies between inside and outside bases.
• B)Special basis adjustments are an annual election made by the partnership.
• C)Special basis adjustments can occur when a new investor purchases a partnership interest.
• D)Special basis adjustments can occur when a partner recognizes a gain or loss from a distribution.

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Definitions:

Ming

A major Chinese dynasty that ruled from 1368 to 1644, known for its cultural achievements and expansion of the Great Wall of China.

Literati Painting

A style of Chinese painting done by highly educated scholars or literati, that values personal expression and minimalistic aesthetics over realistic representation.

Personal Statement

A written description of one's achievements, interests, and ambitions, often submitted as part of a university or job application.

Yuan Temple Vases

Chinese ceramics from the Yuan dynasty, often large and elaborately decorated, used in temples for ritual purposes.