Which of the following statements is FALSE?

A. Unlike S corporations where ALL the distributive items of income/deduction are allocated pro-rate based on the stock ownership percentage of the shareholder, partnerships may make disproportionate allocations of income & expense items among the partners, within certain limitations, in accordance with the partnership agreement.

B. The special allocation of a partner's distributive share provided for the partnership agreement may be disregarded by the IRS if the allocation does not have substantial economic effect.

C. A special allocation in the partnership agreement does NOT have "economic effect" unless the capital accounts of the partners reflect the special allocation, & the liquidation proceeds from the partnership are distributed in accordance with the partners capital account balances.

D. All of the above statements are TRUE!