Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) The contribution of Sec. 1245 property to a partnership triggers recognition of ordinary income by the contributor at the time of the transfer.
B) When a partnership interest is given to a partner in exchange for services, the partnership can deduct or capitalize the FMV of the services, depending on the nature of the services.
C) A partner may not recognize ordinary income when receiving a capital and profits interest in a partnership in exchange for services.
D) All of the above are false.