Individuals W, X, Y, and Z Are All Calendar Year

Individuals W, X, Y, and Z are all calendar year taxpayers.W and X both own a 15% interest and Y and Z both own a 35% interest in the Theta Partnership, which has a May 31 fiscal year end.On November 30, 2012, the Theta Partnership was dissolved into two new partnerships: W and X contributed their interests in Theta to become equal partners in WX Partnership, while Y and Z contributed their interests in Theta to become equal partners in YZ Partnership.As a result of this division:

A) All four Theta partners must include their shares of Theta's income from June 1, 2011 through November 30, 2012 in their 2012 taxable incomes.
B) All four Theta partners will include only their shares of Theta's income from June 1, 2011 through May 31, 2012 in their 2012 taxable incomes.
C) W and X must include their shares of Theta's income from June 1, 2011 through November 30, 2012 in their 2012 taxable incomes.Y and Z will include only their shares of Theta's income from June 1, 2011 through May 31, 2012 in their 2012 taxable incomes.
D) W and X must include their shares of Theta's income from June 1, 2011 through November 30, 2012 in their 2012 taxable incomes.Y and Z will not include any Theta income in their 2012 taxable incomes.
E) Both the WX and the YZ Partnerships must adopt a taxable year, subject to the restrictions of § 706(b) .