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.