Which of the Following Statements Regarding the Section 754 Adjustment

question 132

Multiple Choice

Which of the following statements regarding the Section 754 adjustment is incorrect?

• A)Sec.754 permits a basis adjustment to partnership assets upon the sale of a partnership interest.
• B)Sec.754 permits a basis adjustment to partnership assets upon certain distributions.
• C)The Sec.754 election is made annually by the partnership.
• D)The Sec.754 election is intended to prevent inequities that may occur when the bases of partnership assets are not adjusted.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Input Standards

are pre-set criteria or benchmarks that specify the expected quality, quantity, and characteristics of inputs to a process or system.

Planning

The process of outlining the steps, resources, and timeline needed to achieve specific goals or objectives.

Control Process

The systematic procedure organizations use to direct, regulate, and manage their operations and resources towards achieving set objectives.