Question: 12. A partnership has no Section 751 assets. Assuming that the partnership has a Code Sec. 754 election in effect, the partnership would make all

12. 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

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