Which of the following statements is FALSE?

A. A loss is NEVER recognized by a partner upon the receipt of a current non-liquidating distribution.

B. If a partner reduces his interest in capital & profits from 45% to 10% by receiving a distribution of property from the partnership, such as a distribution is classified as a non-liquidating distribution for tax purposes despite that the distribution economically represents a partial liquidation of the partner's partnership interest.

C. A distributee partner's basis in property distributed by a partnership is generally fair market value.

D. All of the above statements are TRUE!