Which of the Following Is Not a Specific Adjustment to the Partners

question 22

Multiple Choice

Which of the following is not a specific adjustment to the partners' basis in the partnership interest?

• A) Increased by contributions the partner made to the partnership.
• B) Decreased by the amount of guaranteed payments shown on the partner's Schedule K-1.
• C) Increased by the partner's share of tax-exempt income.
• D) Decreased by any decrease in the partner's share of partnership liabilities.
• E) Increased by the partner's share of separately stated income items.

---

Definitions:

Import Substitution

A development strategy that emphasizes domestic manufacturing of products that were imported.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

National Security

National security involves the safety and defense of a nation, including its citizens, economy, and institutions, protected against threats ranging from terrorism to foreign invasions.

Infant Industries

Newly established industries often with limited capabilities compared to established competitors, and potentially protected by a government until they become competitive.