Three people intend to form a business and the business will borrow $810,000 from a local bank. Which of the following statements is true?

a. From a liability standpoint, the owners should be indifferent as to whether they are a general partnership or an S Corp

b. If the business is a partnership the owners can allocate income and losses in any reasonable manner

c. Regardless of whether the business is a partnership or an S corporation, the owners will include the bank debt in the tax basis of their ownership interests

d. If the business is an S corporation, the owners can allocate income and losses in any reasonable manner