Do fast answer of this accounting questions 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: Define Capital GainA capital asset is sold, its value increases, and it is known as a…

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

See similar textbooks

Similar questions

At the end of last year, Harvey, a 25% partner in the four-person HRT partnership, had an outside basis of $28,000, which included his $12,000 share of HRT's debt. On January 1 of the current year, Harvey sells his partnership interest to Samuel for a cash payment of $20,000 and the assumption of his share of HRT's debt. HRT has no hot assets. What is the amount and character of Harvey’s recognized gain or loss on the sale? A. $4,000 capital loss B. $4,000 ordinary loss C. $4,000 capital gain D. $8,000 ordinary income provide answer
At the end of last year, Harvey, a 25% partner in the four-person HRT partnership, had an outside basis of $28,000, which included his $12,000 share of HRT's debt. On January 1 of the current year, Harvey sells his partnership interest to Samuel for a cash payment of $20,000 and the assumption of his share of HRT's debt. HRT has no hot assets. What is the amount and character of Harvey’s recognized gain or loss on the sale? A. $4,000 capital loss B. $4,000 ordinary loss C. $4,000 capital gain D. $8,000 ordinary income
At the end of last year, Harvey, a 25% partner in the four-person HRT partnership, had an outside basis of $28,000, which included his $12,000 share of HRT's debt. On January 1 of the current year, Harvey sells his partnership interest to Samuel for a cash payment of $20,000 and the assumption of his share of HRT's debt. HRT has no hot assets. What is the amount and character of Harvey’s recognized gain or loss on the sale? A. $4,000 capital loss B. $4,000 ordinary loss C. $4,000 capital gain D. $8,000 ordinary income answer
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.
What is the amount and character of Jessica's recognised gain or loss on the sale for this financial accounting question?
Please help me. Thankyou.
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.
At the end of last year, James, a 30% partner in the four- person... Please answer the accounting question
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
At year end, the Cisco partnership has the following capital balances: Montana, Capital P 130, 000 Rice, Capital 110, 000 Craig, Capital 80.000 Taylor, Capital 70, 000 Profits and losses are split on a 3:3:2:2 basis, respectively. Craig decides lo leave the partnership and is paid P90. 000 Irom the business based on the original contractual agreement. If the revaluation method is to be applied, what is the balance of Montana's capital account after Craig withdraws?

SEE MORE QUESTIONS

Recommended textbooks for you

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS