Time remaining:00 :06 :58AccountingThe ABC Partnership is liquidating. A’s beginning basis in her partnership interest is $20,000. B’s beginning basis in her partnership interest is $50,000. C’s beginning basis in her partnership interest is $100,000. The partners are receiving the following: ITEMFMVABACASH25,00025,000 INVENTORY50,00020,000BCASH50,00050,000CCASH10,00010,000 INVENTORY50,00035,000 LAN100,00010,000With respect to A:Basis in cash? ______________________Gain, if any? ______________________Basis in inventory? ______________________With respect to B:Basis in cash? ______________________Gain, if any? ______________________Remaining basis in partnership interest? ______________________With respect to C:Basis in inventory? ______________________Basis in land? ______________________Remaining basis in partnership interest? _____________________

Given, There are 3 partners, A, B, and C

Answered: Accounting The ABC Partnership is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting

The ABC Partnership is liquidating. A’s beginning basis in her partnership interest is $20,000. B’s beginning basis in her partnership interest is $50,000. C’s beginning basis in her partnership interest is $100,000. The partners are receiving the following:

	ITEM	FMV	AB
A	CASH	25,000	25,000
	INVENTORY	50,000	20,000
B	CASH	50,000	50,000
C	CASH	10,000	10,000
	INVENTORY	50,000	35,000
	LAN	100,000	10,000

With respect to A:

Basis in cash? ______________________

Gain, if any? ______________________

Basis in inventory? ______________________

With respect to B:

Basis in cash? ______________________

Gain, if any? ______________________

Remaining basis in partnership interest? ______________________

With respect to C:

Basis in inventory? ______________________

Basis in land? ______________________

Remaining basis in partnership interest? _____________________

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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