[sevenbak]

My understanding of mormonism teaching is that everyone
will go to heaven no matter what - just the basement level.

That is an incorrect understanding. The only thing that is universal is the resurrection. After that, all men will stand before Christ and be judged.
Here’s 2 references that may help you understand our doctrine on this better:

1st Corinthians 15:

40 There are also celestial bodies, and bodies terrestrial: but the glory of the celestial is one, and the glory of the terrestrial is another.
41 There is one glory of the sun, and another glory of the moon, and another glory of the stars: for one star cdiffereth from another star in glory.
42 So also is the resurrection of the dead. It is sown in corruption; it is raised in incorruption:
43 It is sown in dishonor; it is raised in glory: it is sown in weakness; it is raised in power:
44 It is sown a natural body; it is raised a spiritual body. There is a natural body, and there is a spiritual body.

And also this one from the D&C: It gets right to it about verse 70: Warning, Section 76 is Meat!

http://scriptures.lds.org/en/dc/76

[Elsie]

- King James
Acts 24:14  But this I confess unto thee, that after the way which they call heresy, so worship I the God of my fathers, believing all things which are written in the law and in the prophets:

 

-- American Standard
Acts 24:14  But this I confess unto thee, that after the Way which they call a sect, so serve I the God of our fathers, believing all things which are according to the law, and which are written in the prophets;

 

-- New International
Acts 24:14  However, I admit that I worship the God of our fathers as a follower of the Way, which they call a sect. I believe everything that agrees with the Law and that is written in the Prophets,

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Interesting tagline verse...