The December 31st, current year balance sheet of the Great Works General Partnership reads as follows. Adjusted Basis FMV Cash $ 65,000 $ 65,000 Unrealized Receivables -0- 7,500 Capital and § 1231 assets 55,000 100,000 Total $120,000 $172,500 Roy, capital $ 40,000 $ 57,500 Sue, capital 40,000 57,500 Ted, capital 40,000 57,500 Total $120,000 $172,500 The partners share equally in partnership capital, income, gain, loss, deduction, and credit. Ted's adjusted basis for his partnership interest is $40,000. On December 31, of the current year, he retires from the partnership, receiving a $60,000 cash payment in liquidation of his interest. The partnership agreement states that $2,500 of the payment is for goodwill. Which of the following statements about this distribution is false? Group of answer choices If capital is NOT a material income-producing factor to the partnership, the § 736(a) payment will be $2,500. If capital IS a material income-producing factor, the entire $60,000 payment will be a § 736(b) property payment. The payment for Ted's share of goodwill will create $2,500 of ordinary income to him. The partnership can deduct any amount that is a § 736(a) payment because it will be determined without regard to partnership profits. All statements are false.