Source: Federal Income Tax: Code and Regulations-Selected Sections (2020-2021), by Robert J. Peroni, published by Wolters Kluwer July 30, 2020. ISBN 9780808054610. Product Number 10014873-0011

A has a 50 percent interest and B and C each has a 25 percent interest in the capital and profits of the ABC partnership. A's interest is liquidated, and shortly thereafter D acquires from the partnership a 50 percent interest in the partnership. Discuss the tax consequences of these transactions.