A partnership has no Section 751 assets . Assuming that the partnership has a Code Sec . 754 election in effect , the partnership would make all of...
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32. A partnership has no Section 751 assets. Assuming that the partnership has a Code Sec. 754 election in effect,the partnership would make all of the following adjustments except:

a. Increase the basis of partnership property because of capital gain which a distributee partner recognizes in a current distribution.b. Decrease the basis of partnership property because of capital loss which a distributee partner recognizes in a liquidating distribution.c. Increase the basis of partnership property because the distributee partner’s basis for the partnership interest limits the basis assigned to partnership property received in a current distribution.d. Decrease the basis of partnership property because the amount of the distributee partner’s basis assigned to partnership property distributed in a liquidating distribution exceeds the partnership’s pre-distribution basis in the property.e. Decrease the basis of partnership property for the excess of the amount a purchasing partner pays for a partnership interest over the partner’s proportionate share of the partnership’s basis in its properties.
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Uploaded by: leeapirl

Subject: Accounting, Business

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