Tax Drill Section 751 Indicate whether the following statements are "True" or "False" regarding tax treatment of disproportionate distributions and 5 751(b). a. The ordinary income-producing assets, called hot assets, include cash, substantially appreciated inventory, and unrealized receivables. b. Section 751(b) maintains each partner's proportionate share of ordinary income by recasting any transaction in which a disproportionate distribution of hot assets is made. c. The taxation of disproportionate distributions is based on the aggregate theory of taxation. Under this theory, each partner is deemed to own a proportionate share of the underlying assets of the partnership.