Which of the following statements is false?

A. When real estate is sold, the proceeds the seller is deemed to receive includes not only the cash received at closing, but also the amount of any mortgage loan on the property the taxpayer is no longer obligated to pay.

B. When an interest rate in a purchase-money mortgage for real estate is substantially below the current market rate of interest, the imputed interest rules may require a conversion of a portion of nominal principal on the note to interest thereby reducing the original principal of the note that will be included in the property's basis.

C. All of the above are true.

D. None of the above are true.