Identify Which of the Following Statements Is False

Multiple Choice

Identify which of the following statements is false.

A) Jean and Blossom form an equal partnership. Jean contributes $10,000 cash and Blossom contributes property with a $10,000 FMV and a $5,000 basis. When the partnership sells the property contributed by Blossom for $10,000 shortly after the formation, Blossom must include the $5,000 gain in her income.
B) In order to shift income/loss between partners, there must be substantial economic effect.
C) The BB Partnership wants to make a special allocation of $10,000 of long-term capital gain to Bob and a special allocation of $10,000 of ordinary income to Briana. This allocation will have a substantial economic effect.
D) Partners must make up negative balances in their capital accounts upon liquidation of the partnership.