Which of the following statements is true regarding partnership operating distributions?

Multiple Choice

If a partner's outside basis is greater than the bases of the assets distributed in an operating distribution, the partner will recognize a loss.

If a partner's outside basis is less than the bases of the assets distributed in an operating distribution, the partner will recognize a loss.

If a partner's outside basis is greater than the bases of the assets distributed in an operating distribution, the partner will recognize a gain.

None of the statements are true.