What Is the Correct Order for Applying the Following Three

question 89

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)1, 2, 3
• C)3, 1, 2
• D)2, 3, 1

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Definitions:

Parasympathetic

Referring to the part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Somatic

Relating to, or affecting the body, especially as distinguished from the mind or consciousness.

Endorphins

Natural, pain-relieving chemicals produced by the body that also contribute to feelings of pleasure and well-being.

Dopamine

A neurotransmitter involved in the regulation of movement, attention, learning, mood, and motivation.