Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) Tax-exempt interest received by a partnership is taxable to the partners if distributed.
B) Partnership gains and losses from two different casualty and theft occurrences in one year are passed through to the partners as two separate items.
C) The amount and character of any gains/losses are determined at the partnership level.
D) All of the above are false.