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Han purchases a 25% interest in the CHOP Partnership from Huang for $600,000. The partnership has assets with a basis of $1,600,000. What is the
Han purchases a 25% interest in the CHOP Partnership from Huang for $600,000. The partnership has assets with a basis of $1,600,000. What is the amount of the basis adjustment if the partnership has a 754 election in place?
| A. | $1,000,000 increase in partnership assets |
| B. | $200,000 increase in Han's share of the basis in partnership assets |
| C. | $150,000 increase in Han's basis in his partnership interest |
| D. | $0 |
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