Which of the Following Is a Valid Reason for Making

question 51

Multiple Choice

Which of the following is a valid reason for making a 754 election?

• A)An incoming partner pays more for a partnership interest that his or her proportionate share of partnership assets.
• B)Partners are able to increase their basis in the partnership interest upon the sale of a partnership interest.
• C)Partnerships can increase, but not decrease, their basis in partnership assets.
• D)A partnership can reduce its basis in assets upon cash distributions to partners.