Code Section 736 offers a fair degree of flexibility by permitting the partners the ability to, within limits, characterize payments made in liquidation of the interest of a retiring partner or a deceased partner in three different ways, as follows: 1: Per Code Section 736(a)(1), payments are characterized as a distributive share to the recipient of partnership income if the amount thereof is determined with regard to the income of the partnership, 2: Per Code Section 736(a)(2), payments are characterized as a guaranteed payment described in section 707(c) if the amount thereof is determined without regard to the income of the partnership, or 3: Per Code Section 736(b), payments are characterized as payments for Interest in Partnership. Select one:
1) True
2) False