Alan transfers Property "A" with a fair market value of $1,000 and an adjusted basis of $800 in exchange for a 50% interest in partnership A&B. Bob contributes Property "B" with a fair market value of $1,000 and an adjusted basis of $700. After only 6 months, the two realize that they cannot get along and distribute the assets back to the partners. All of the following are TRUE statements, except one. Which statement is FALSE
A. If Property "B" is transferred to Bob, he not have any gain or loss.
B. If property "A" is transferred to Alan, he will have a holding period that includes both the time he held the property before the contribution, and the time the partnership held the property.
C. If property "A" is transferred to Bob, he will recognize a gain.
D. If property "B" is transferred to Bob, he will have an adjusted basis of $700 in the property.