Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) A partner's relief of debt is treated as if the partner receives a cash distribution.
B) When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
C) Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
D) All of the above are false.