Which of the following statements is correct regarding the impact of a section 754 election? Select one:
a. The 754 election corrects the disparity between book values and capital accounts.
b. The 754 election corrects the disparity between book values and inside basis.
c. The 754 election corrects the disparity between outside basis and capital accounts.
d. The 754 election causes a tax termination to occur.
e. None of the above.