Which of the Following Transactions Will Not Result in Termination

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.