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:

Sum

The result obtained by adding two or more numbers.

Scientific Notation

A way of expressing numbers that are too large or too small to be conveniently written in decimal form, using powers of ten.

Quadratic Polynomial

A polynomial of degree two, typically written in the form ax^2 + bx + c where a, b, and c are constants.

Cubic Polynomial

A polynomial of degree three, characterized by an equation of the form ax^3 + bx^2 + cx + d, where a, b, c, and d are constants and a ≠ 0.