3. When must a partnership make mandatory basis adjustments?

A) on any sale of a 20% or greater partnership interest

B) on any sale of a partnership interest for $250,000 or more

C) on any distribution of assets with a value of $250,000 or more

D) on any sale of a partnership interest where the partnership's adjusted basis in its assets exceeds their fair market value by $250,000 or more

4.. Patrick purchased a one-third interest in the PPP partnership for $600,000. At the time of the purchase, the partnership had a 754 election in effect and its only asset was land with a basis of $1,500,000. This year, PPP sells the land for $1,800,000. What is Patrick's recognized share of the gain on the sale of the land?

A) $0

B) $100,000

C) $300,000

D) none of the above