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.

---

Definitions:

Shallow Water

An area of water that is not deep, often near the shore or in a body of water where the depth is minimal.

Physical Education Instructor

A professional who teaches and promotes physical fitness and activities in educational settings.

James Naismith

The Canadian-American physical educator who invented the game of basketball in 1891.

Peach Baskets

Initially used as the first goals in the game of basketball, these containers were nailed to the balconies of gymnasiums, marking the start of this now popular sport.