Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) The basis of the partnership interest is apportioned between all of the assets received in a liquidating distribution based on the relative FMVs of the assets.
B) When unrealized receivables are distributed in a liquidating distribution, the basis of the receivables will be increased.
C) The bases of unrealized receivables and inventory distributed by a partnership in liquidation of a partnership interest are never increased above their bases in the hands of the partnership.
D) All of the above are false.