Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A)A partnership may make an annual election to adjust the basis of its assets upon the sale of a partnership interest.
• B)The Sec. 754 election applies to both sales and distributions.
• C)The Sec. 754 election applies to only current and nonliquidating distributions.
• D)A partnership can revoke a Sec. 754 election every 5 years.

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Definitions:

Norris-LaGuardia Act

U.S. legislation passed in 1932 that restricts the power of courts to issue injunctions against nonviolent labor disputes.

Union Organizers

Individuals responsible for forming, expanding, and maintaining labor unions by rallying workers and facilitating the unionization process.

Right-To-Work Law

Legislation that prohibits union security agreements between companies and workers' unions, allowing individuals in the workforce to work without being compelled to join a union.

Union Shop

A place of employment where nonunion workers may be employed for a trial period of not more than 30 days, after which the nonunion workers must join the union or be discharged.