Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) If all tax- exempt interest income is distributed when received by a partnership, the partners' bases are the same after the distribution as they were before the tax- exempt interest was received by the partnership.
B) A partner's basis for his or her partnership interest is increased by his or her share of the partnership's tax- exempt income.
C) A general partner's share of recourse debt is based on his or her economic risk of loss, and his or her share of nonrecourse debt is predominantly based on his or her share of partnership profits.
D) All of the above are true.