Which of the Following Transactions Will Not Result in the Termination

question 72

Multiple Choice

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

• A) The partnership is incorporated.
• B) The sole surviving partner buys the interest of the deceased second partner through a buy-sell agreement taking place upon the second partner's death.
• 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) All of these terminate the partnership.

---

Definitions:

Family Therapist

A mental health professional specializing in treating psychological disorders within the context of family interactions and dynamics.

Alcohol Use Disorder

A medical condition characterized by an impaired ability to stop or control alcohol use despite negative social, occupational, or health consequences.

Psychoanalyst

A therapist who uses psychoanalysis, a therapeutic technique founded by Freud, to explore unconscious motives and conflicts in patients.

Placebo Effect

Experimental results caused by expectations alone; any effect on behavior caused by the administration of an inert substance or condition, which the recipient assumes is an active agent.