Partner J, a Cash Basis Taxpayer, Is a 75% Partner

Partner J, a cash basis taxpayer, is a 75% partner in the cash basis J&D Partnership.During the current year, J lends the partnership $50,000, receiving a properly executed note from the partnership bearing the market rate of interest.J&D used the loan proceeds as working capital.Which of the following is accurate?

A) Because J owns more than a 50% interest in J&D, the interest payment will be treated as a guaranteed payment made by J&D to J
B) Because J owns more than a 50% interest in J&D, the interest payment will be treated as a distributive share of partnership taxable income to J.
C) The interest paid on the note will be ordinary interest income to J and a current interest deduction to J&D in the year paid.
D) Because J owns more than a 50% interest in J&D, the interest payment will be treated as a guaranteed payment made by J&D to J.
E) Because J owns more than a 50% interest in J&D, the interest payment will be a nondeductible expense to J&D.