Identify Which of the Following Statements Is False

Identify which of the following statements is false.

A) When a partnership interest is sold, the buyer and seller can allocate the sale price among the Sec. 751 assets and non- Sec. 751 assets in any reasonable manner.
B) On June 30 of the current year, James Roe sells his interest in the Roe & Doe Partnership for $30,000. Roe's adjusted basis in Roe & Doe at June 30 is $7,500 before apportionment of any partnership income for the current year. The Roe & Doe Partnership uses the calendar year as its tax year and has no liabilities on June 30. Roe's distributive share of partnership income up to June 30 is $22,500. Roe acquired his interest in the partnership five years ago. Roe will have a long- term capital gain on the sale of his interest of $22,500.
C) Section 751 assets include all inventory and all unrealized receivables in a sale or exchange situation.
D) Statements B and C are true.