Which of the Following Transactions Will Not Result in Termination

question 70

Multiple Choice

Which of the following transactions will not result in termination of a partnership for Federal tax purposes?

• A)The partnership is incorporated.
• B)A 70% interest in partnership capital and profits is sold to a third party purchaser.
• C)Cash is distributed in liquidation of a 60% partner's interest in a five-partner partnership.
• D)A 40% interest in partnership capital and profits is sold to the other partner in a two-partner partnership.
• E)None of the above.

---

Definitions:

Custom-made Invitations

Invitations that are specifically designed and produced to meet the unique preferences and specifications of the requester for a particular event.

Wooden Swan

A decorative or artistic object, often carved from wood, designed to resemble a swan.

Over-the-top Celebration

An event or party marked by extravagant or excessive displays beyond what is usual or expected.

Hispanic Girl

A girl or young woman who identifies with or is descended from Spanish-speaking populations, particularly those from Latin America or Spain.