Hello tutor please provide this question solution general accounting At the end of last year, Cindy, a 20% partner in the five-person CBTpartnership, has an outside basis of $25,000 including her $10,500 share ofCBT debt. On January 1 of the current year, Cindy sells her partnershipinterest to Raymond for a cash payment of $18,000 and the assumption of hershare of CBT's debt. CBT has no hot assets.What is the amount and character of Cindy's recognized gain or loss on thesale?A. $7,000 capital loss.B. $7,000 ordinary loss.C. $3,500 capital gain.D. $7,500 ordinary income.

Step 1: Calculate Cindy's Amount RealizedStep 2: Determine Cindy's Adjusted Outside BasisStep 3:…

Answered: At the end of last year, Cindy, a 20%…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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At the end of last year, Cynthia, a 20 percent partner in the five-person CYG partnership, has an outside basis of $34,000, including her $21,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $24,500 and the assumption of her share of CYG's debt. CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale? Multiple Choice $9,500 capital loss. $9,500 ordinary loss. $11,500 capital gain. $3,500 ordinary income.
. At the end of last year, Catherine, a 30% partner in the KLM partnership, had an outside basis of $50,000 in her partnership interest. She sold her partnership interest for $90,000. The partnership had $100,000 of unrealized receivables, and no debt. Calculate the amount and character of Catherine’s recognized gain or loss.
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Suzy Vopat has owned and operated a proprietorship for several years. On January 1, she decidesto terminate this business and become a partner in the firm of Vopat and Karen. Vopat’s investmentin the partnership consists of $12,000 in cash, and the following assets of the proprietorship: accountsreceivable $14,000 less allowance for doubtful accounts of $2,000, and equipment $30,000 less accumulateddepreciation of $4,000. It is agreed that the allowance for doubtful accounts should be $3,000 forthe partnership. The fair value of the equipment is $23,500. Determine the capital balance of Suzy Vopat in the partnership if the partnership also agrees to assume Suzy Vopat's s sole proprietorship’s liabilities of $25,000.
olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates during the most recent year, she withdrew $21,000 from the partnership. Her share of partnership's net loss was $16,500 and she made an additional equity contribution of000. Her capital account ended the year at $151,000. What was her capital balance at beginning of the year?
Natasha contributes land to the newly formed Romanoff Partnership in exchange for a 40% interest. The land's adjusted basis and fair market value is $540,000. It is subject to a $200,000 liability, assumed by the partnership. At year end the partnership’s accounts payable are $120,000 and the assumed debt liability is $180,000. Romanoff opened a $300,000 line of credit but did not draw on the line. To secure the line of credit, each partner had to contribute an additional $30,000. All liabilities are allocated proportionately. The partnership’s income is $500,000. Romanoff distributed $113,000 to Natasha. What is her ending outside basis?
Goldfish partnership has 3 partners, Susan, Tina, and Vivian. Each partner has a basis in her partnership interest of $200,000. In the current year, Susan receives a liquidating distribution including $60,000 in cash and $120,000 in unrealized receivables. Susan takes a zero basis in the unrealized receivables. Will Susan recognize a capital loss on this liquidation and if so, what is the amount?
At year-end, the Circle City partnership has the following capital balances: Manning, Capital $350,000 Gonzalez, Capital 330,000 Clark, Capital 300,000 Freeney, Capital 290,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $330,000 from the business based on the original contractual agreement.The payment made to Clark beyond his capital account was for Clark's share of previously unrecognized goodwill. After recognizing partnership goodwill, what is Manning’s capital balance after Clark withdraws? a. $359,000b. $372,500c. $380,000d. $395,000
At year-end, the Queen City partnership has the following capital balances: Isabella, Capital Catherine, Capital Elizabeth, Capital Victoria, Capital $ 150,000 130,000 100,000 90,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Elizabeth decides to leave the partnership and is paid $114,000 from the business based on the original contractual agreement. Required: The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws. Isabella's capital before withdrawal of Elizabeth Isabella's share of goodwill recognition Isabella's capital balance after withdrawal of Elizabeth S 0
Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year? a. $124,000 O b. $176,000 ○ c. $192,000 Od. $144,000
At the beginning of the year, Jill's basis in her 40% limited partnership interest was $10,000. During the year, the partnership reported a loss of $90,000 and the partnership obtained a $40,000 recourse loan on some machinery. How much loss may Jill deduct if she has $40,000 of passive income? a) $10,000 b) $16,000 c) $26,000 d) $36,000 e) None of the above

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