Which of the Following Statements Concerning § 751(b) Disproportionate Distributions

Which of the following statements concerning § 751(b) disproportionate distributions is accurate?

A) Both the distributing partnership and the recipient partner may recognize taxable gain because of a disproportionate distribution.
B) A disproportionate distribution can trigger the recognition of either ordinary gain or loss to the recipient partner.
C) A disproportionate distribution can only occur if the partnership has failed to make a valid § 754 election.
D) The disproportionate distribution rules of § 751(b) reflect the entity theory of partnerships.
E) None of the above is accurate.