Which of the Following Statements Regarding the Rationale for Adjusting

Multiple Choice

Which of the following statements regarding the rationale for adjusting a partner's basis is false?

A) To prevent partners from being double taxed when they sell their partnership interests
B) To ensure that partnership tax-exempt income is not ultimately taxed
C) To prevent partners from being double taxed when they receive cash distributions
D) To ensure that partnership non-deductible expenses are never deductible
E) None of these