(a) Jabilo's basis in his partnership interest is $300,315. What is the purchase price for his partnership interest? (b) How much gain or loss will Jabilo recognize on the sale of his partnership interest to Leonard and how much of that gain or loss is ordinary gain or loss and how much
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- 7. The following transactions of Best Pizza, owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019: (see attached images) March 1 Reyes, who owns an ice cream parlor, invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000. Customers’ accounts of P50,000 were also taken over by the partnership at its realizable valuc of 80%. (Recognize an allowance for doubtful accounts for 20% of cost). Ortiz invested cash of P40,000 and pieces of furniture costing P150,000 which the partners agree to be 50% depreciated to arrive at its current fair value. May 1 Flores, an expert in pizza making, invested imported cooking equipment costing P350,000 but which fair value dropped by 40% of its cost. Flores made a down payment of P200,000 when this was purchased and issued a note for the balance half of which is still unpaid. Partners agree that the liability will be assumed, by the partnership. May 31 Partners agree that additional cash investments…7. On Apr. 30, 2019, Lacson, Yacapin, and Bernal formed a partnership by combining their separate business proprietorships. Lacson contributed cash of P50,000. Yacapin contributed property with a P36,000 carrying amount, a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibility for the P35,000 mortgage attached to the property. Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original cost, and P55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest Apr. 30, 2019, capital balance? a. b. Lacson Yacapin C. d. Bernal All capital account balances are equal.1. On May 1, 2019, Gonzaga and Balace formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Gonzaga contributed a parcel of land that cost P10,000. Balace contributed P40,000 cash. The land was sold for P18,000 on May 1,2019, immediately after formation of the partnership. What amount should be recorded in Gonzaga's capital account on formation of the partnership? a. P15,000 b. P17,400 C. P10,000 d. P18,000
- Required information [The following information applies to the questions displayed below.] Mikaere's basis in the Jimsoo Partnership is $59,500. In a proportionate liquidating distribution, Mikaere receives cash of $8,300 and two capital assets: (1) Land A with a fair market value of $22,600 and a basis to Jimsoo of $17,950, and (2) Land B with a fair market value of $10,975 and a basis to Jimsoo of $17,950. Jimsoo has no liabilities. Required: c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to Mikaere (amount and character of gain or loss)? c2. What is Mikaere's basis in distributed assets? Complete this question by entering your answers in the tabs below. Required C1 Required C2 What is Mikaere's basis in distributed assets? Basis Cash Land 1 $ 8,300 Land 2n April 30, 2018, Lacson, Yacapin, and Bernal formed a partnership by combining their separate business proprietors. Lacson contributed cash of P50,000. Yacapin contributed property with a P36,000 carrying amount, a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibity for the P35,000 mortgaged attached to the property. Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original cost, and P55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest capital balance?Matthew and Hein sell to Melges a 1/3 interest in the Matthew - Hein partnership. Melges will pay Matthew and Hein each $141400 for admission into the organization. Before this transaction, Matthew and Hein show capital balances of $209000 each. The journal entry to record the admission of Melges will O show a credit to Melges, Capital for $282800. O show a debit to Hein, Capital for $141400. show a debit to Cash for $282800. O not show a debit to Cash.
- On June 30, 2021, William and Bryan formed a partnership. The partners agreed to invest equalamounts of capital. William invested his proprietorship’s assets and liabilities as follows: Book Value Fair Market ValueAccounts Receivable Php 720,000 Php 720,000Allowance for Doubtful Accounts - 0 - 100,500Merchandise Inventory 233,000 241,000Prepaid Expenses 117,000 117,000Office Equipment 459,000 276,000Accumulated Depreciation 153,000 - 0 -Accounts Payable 191,000…Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions: a.) No agreement concerning division of profit. b.) Divided in the ratio of original capital investment. c.) Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. d.) Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally. e.) Allowance of interest at the rate of 8% on original investments, salary allowances of P50,000 and P70,000, respectively, and the remainder to be divided equally.AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $510,000 cash, and YZ contributed land ($510,000 FMV and $440,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $255,000 from a local bank. The debt is recourse (unsecured by any specific partnership asset). Required: a. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners. b. Compute each partner's initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited partner. Complete this question by entering your answers in the tabs below. Required A Required B Compute each partner's initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited partner. AB's initial basis YZ's initial basis Amount
- . Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $10,000. The capital balances of each partner are $131,000 and $185,000, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20% interest for $66,000. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area 2. Ortiz purchased a 30%…7. Flor and Gerby formed a partnership. Flor contributed cash of P30,000 and a computer costing P60,000. Gerby contributed equipment costing P60,000. The current market values of the non-cash assets are: computer-P45,000 and equipment- P75,000. The partnership will not assume the P15,000 liability on the equipment contributed by Gerby. What amount will be credited to each partner's capital accounts?After the tangible assets have been adjusted to fair values, the capital accounts of Rey Refozar and Rogelio Ceradoy have balances of P75,000 and P125,000, respectively. Jiexel Manongsong is to be admitted to the partnership, contributing P50,000 cash to the partnership, for which he is to recieve an equity of P65,000. All partners share equally in profit. Required: 1. Prepare the journal entry to record the admission of Manongsong who is to recieve a bonus of P15,000. 2. Calculate the capital balances of each partners after the admission of the new partner.