Which of the Following Transactions Will Not Result in the Termination

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.