Which of the Following Statements Correctly Reflects the Rules Regarding

Which of the following statements correctly reflects the rules regarding proportionate liquidating distributions?

A) Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner's basis in the partnership interest.
B) A partner's basis in distributed unrealized receivables is the lesser of the partnership's basis in the receivables or their fair market value.
C) The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis.
D) Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets.
E) The partner can recognize gain, but not loss, on a proportionate liquidating distribution.