Which of the following statements regarding liquidating distributions is true?

Multiple Choice

• A partner will recognize a gain when the partnership distributes only money and the amount is greater than the partner's outside basis.
• A partner will recognize a gain when the partnership distributes only money and hot assets and the inside bases of the distributed assets are greater than the partner's outside basis.
• A partner will recognize a gain when the partnership distributes money, hot assets, and other property and the inside bases of the distributed assets are greater than the partner's outside basis.
• A partner will recognize a gain when the partnership distributes only money and the amount is less than the partner's outside basis.