Which of the following statements regarding liquidating distributions is true?
A. A partner will recognize a gain when the partnership distributes only money and the amount is greater than the partner's outside basis.
B. A partner will recognize a gain when the partnership distributes only money and the amount is less than the partner's outside basis.
C. 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.
D. 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.
Answer: A
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