Which of the Following Is False Concerning Special Basis Adjustments

question 87

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 adjustment is 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:

Behavioral Need

Psychological or physiological necessities that drive behaviors in individuals, seeking fulfillment to maintain well-being and homeostasis.

Application Process

The sequence of actions undertaken in order to complete a task or achieve a certain status, often involving submission of information or documents.

Cover Letter

A written document submitted with a job application explaining the applicant's credentials and interest in the open position.

Concrete Operational Stage

A stage in Piaget's theory of cognitive development, where children aged about 7-12 years start to think logically about concrete events but still struggle with abstract concepts.