Which of the Following Is False Concerning Special Basis Adjustments

question 38

Multiple Choice

Which of the following is false concerning special basis adjustments?

• A) Special basis adjustments are intended to eliminate discrepancies between inside and outside bases.
• B) Special basis adjustment is an annual election made by the partnership.
• C) Special basis adjustments can occur when a new investor purchases a partnership interest.
• D)Special basis adjustments can occur when a partner recognizes a gain or loss from a distribution.

---

Definitions:

Reflexes

Involuntary and immediate responses to specific stimuli that occur without conscious thought, as part of the body's survival mechanisms.

Neurons

The basic working units of the brain, specialized cells that transmit nerve impulses.

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue that extends from the brainstem to the lower back, serving as a major pathway for information traveling between the brain and the rest of the body.

Hippocampus

A region of the brain that is associated with memory formation, organization, and retrieval, as well as spatial navigation.