The provisions of IRC Section 704b apply to which of the fol

The provisions of IRC Section 704(b) apply to which of the following allocations? A Bottom line allocations of a partner\'s capital account B. Bottom line allocations of partnership losses C. Income allocation or IRS audit adjustments or D. Item allocations of partnership debt.

Solution

Solution: Bottom line allocations of partnership losses

Explanation: The provisions of the 704(b) is applicable to an allocation of partnership net income or loss to a partner; and item allocation of income, loss, gain, deduction