A $($a C corporation$),$ and B and C$,$ both individuals, are partners in a limited partnership. A is the general partner and B and C are limited partners owning $10\%,45\%,$ and $45\%$ interests in the partnership, respectively. The balance sheet is as follows. The partnership, which has not made a $\backslash (\backslash$S $754\backslash )$ election, distributes Capital Asset $\backslash$#$1$ to C in liquidation of her interest. $($a$)$ What are the tax consequences to the parties? $($b$)$ Does the anti$-$abuse regulation apply to the transaction? See Reg. $1\mathrm{.}701-2($d$)$ Examples $1,8$ and $9$; see also $734($a$)\backslash$& $($d$).$