All of the following statements are true with regard to the formation of a partnership except

A.

a transfer of property in exchange for a partnership interest causes nonrecognition of gain or loss treatment.

B.

with regard to capital assets and 1231 assets, the partnership's holding period for the transferred property includes the contributing partner's holding period.

C.

the partnership's basis in the transferred property carries over from the transferor partners.

D.

the nonrecognition rules apply to both property and services contributed to a partnership