Identify Which of the Following Statements Is True

Identify which of the following statements is true.

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