In Applying the Basis Limitation on the Deduction of S

In applying the basis limitation on the deduction of S corporation losses, which of the following statements is true?

A) The basis of a shareholder's interest in an S corporation, for purposes of limiting deductibility of losses, is computed in the same manner as a partner's basis in a partnership interest.
B) A shareholder is permitted to deduct losses against basis in any debt obligation from the S corporation to the shareholder.
C) If a shareholder's tax basis in a debt obligation is reduced, any gain resulting from the repayment of that obligation is considered ordinary income.
D) All of these statements are false.