Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution.
B) When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated.
C) If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner.
D) All of the above are false.