A is one-third partner in a real estate partnership. A EXCHANGES his partnership interest with X, an unrelated "buyer" for an apartment complex owned by X. A made cash distributions to the existing partnership of $20,000 and his share of partnership debts is $34,000. The fair market value of the apartment complex A receives from X is $82,000. A receives no cash from X in the exchange.

Which of the following statements is FALSE regarding the tax consequences of the above facts?

A. A recognizes no taxable gain on the transaction because he received only property & no cash.

B. This transaction is NOT a distribution from a partnership.

C. A will recognize a taxable gain of $62,000 on this transaction.

D. A could have avoided a taxable gain on this transaction by receiving a distribution of real estate from the partnership & exchanging (under 1031-like kind) the real estate A received in his distribution for X's apartment complex.