Antoine, Xavier, and Fred form Shockers, LLC.  Antoine contributes Whiteacre (FMV = 500,000; basis = 200,000; subject to non-recourse debt of $300,000).  Xavier contributes equipment (FMV = 300,000; basis = 50,000; subject to non-recourse debt of 100,000).  Fred contributes 200,000 cash.  Determine each partner’s outside basis and complete the partnership’s books on formation. Assets Book  Tax Liabilities Book Tax                               Capital           Antoine           Xavier           Fred       Debt Allocation:              Outside Basis:

Gena and Bena decide to organize a partnership. Gena invests $35,000 cash, and accounts receivable of 20,000. Bena contributes $5,000 and inventory having a cost of $27,000. The partners agree that the fair value of the accounts receivable is 17,000 and the fair value of the inventory is $25,000. Instructions: Prepare the entry to record each partner's investment.

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $16,000 of cash and land with an FMV of $61,000. Her basis in the land is $26,000. Andrew contributes equipment with an FMV of $18,000 and a building with an FMV of $39,000. His basis in the equipment is $14,000, and his basis in the building is $26,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

Mick, Tommy, and Nikki each contributed $500 cash to the MC partnership. The partnership used the cash to purchase land for $1,000; equipment for $300; and a vehicle for $200.  Subsequently, when the land is valued $2,500, the equipment is valued at $900, and the vehicle is valued at $200, MC plans to admit Vince to the partnership as 25% partner.  Vince will make a cash contribution.  Assume MC elects to revalue its assets in accordance with the section 704(b) regulations. Assume the same facts as above. Soon after Vince’s contribution, the MC partnership sells the land for $3,000.  What is the partnership’s book gain?  What is the partnership’s tax gain?  How is the partnership’s book and tax gain allocated?

Mick, Tommy, and Nikki each contributed $500 cash to the MC partnership. The partnership used the cash to purchase land for $1,000; equipment for $300; and a vehicle for $200.  Subsequently, when the land is valued $2,500, the equipment is valued at $900, and the vehicle is valued at $200, MC plans to admit Vince to the partnership as 25% partner.  Vince will make a cash contribution.  Assume MC elects to revalue its assets in accordance with the section 704(b) regulations.  How will the book gain be allocated?  How much cash should Vince contribute?  Update the partnership’s book following Vince’s contribution of cash and the revaluation.  *Note – when answering this question assume that neither the equipment nor the vehicle have been subject to depreciation at the time Vince becomes a partner*

Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500.Prepare the entry to record Nichols’s investment in the partnership, assuming the equipment has a fair value of $4,000.  What is the account title and explanation?  what is debit?  what is credit?

Bobby Robinson and Nicholas White decide to organize the R&W partnership. Robinson invests $15,000 cash, and White contributes $10,000 cash and equipment having a book value of $4,500. Prepare the entry to record White’s investment in the partnership, assuming the equipment has a fair value of $4,000.

The DJ Partnership has two partners, Dawn and Jack. Each partner's basis in his or her partnership interest is $14,000 before any distribution. The partnership distributes $23,000 cash to Dawn and $5,000 cash to Jack. Read the requirements. Requirement a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. (Complete all input fields. Enter a $0 for any zero balances. Enter a loss with a minus sign or parentheses.) Dawn Jack (1) Gain (loss) recognized Requirements (2) Basis in the partnership interest after the distribution a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. b. Assuming a liquidating distribution, determine each partner's gain or loss recognized.

This project covers general partnership basis issues including computation of partners' adjusted basis, determination of current-year tax position, preparation of tax forms, and creation of a memo to the partners with an analysis of their current-year tax issues and changes to basis. In the current year, Mary, Andrew, and Paul formed Venezia General Partnership. Mary contributed $55,000 cash, Andrew contributed $55,000, and Paul contributed land with a cash basis of $70,000 and a fair market value of $180,000. The partnership assumed a $70,000 mortgage on the land; no partner is personally liable for the mortgage. At the end of the current year, Venezia made a $7,000 payment on the mortgage. Mary, Andrew, and Paul will split all profits and losses equally. Current-year operations had the following results: Sales revenue: $260,000 Cost of goods sold: $205,000 Operating expenses: $35,000 Long-term capital gains: $1,200 Section 1231 Gains: $450 Charitable contributions: $350 Municipal…

This project covers general partnership basis issues including computation of partners' adjusted basis, determination of current-year tax position, preparation of tax forms, and creation of a memo to the partners with an analysis of their current-year tax issues and changes to basis. In the current year, Mary, Andrew, and Paul formed Venezia General Partnership. Mary contributed $55,000 cash, Andrew contributed $55,000, and Paul contributed land with a cash basis of $70,000 and a fair market value of $180,000. The partnership assumed a $70,000 mortgage on the land; no partner is personally liable for the mortgage. At the end of the current year, Venezia made a $7,000 payment on the mortgage. Mary, Andrew, and Paul will split all profits and losses equally. Current-year operations had the following results: Sales revenue: $260,000 Cost of goods sold: $205,000 Operating expenses: $35,000 Long-term capital gains: $1,200 Section 1231 Gains: $450 Charitable contributions: $350 Municipal…