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Billy contributes land with a FMV of $7,000 and a basis of $3,000 to a
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- When Abe's outside basis in the Vacuna Partnership is $211,000, the partnership distributes to him $36,000 cash, three accounts receivable (fair market value of $61,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $484,000, inside basis to the partnership of $420,000). Abe remains a partner in the partnership, and the distribution is proportionate to the partners. If an amount is zero, enter "0". a. Does the partnership recognize a gain or loss as a result of this distribution? (gain, loss, no gain or loss) b. As a result of the distribution, Abe recognizes .(a gain, a loss, neither a gain or loss) c. In what order are the assets distributed to Abe? (land, accounts receivable, cash) Calculate Abe's basis in the land, in the accounts receivable, and in his partnership interest immediately following the distribution.Accounts receivable: Land: Partnership interest:Laurel and Hardy form a 50/50 partnership (HaHa Partners) in 2018. Laurel contributes land with a fair market value of $700,000 and an adjusted basis of $500,000. The land is subject to a $250,000 mortgage which the partnership assumes. Hardy contributes $450,000 of cash. In 2020, the partnership sells the land (originally contributed by Laurel) for $900,000. How much gain will Laurel report on his 2020 1040 return?Ann, Beth, Chris and Dan are equal partners in the ABCD. They have agreed that all items of partnership income, gain, loss and deduction will be split equally between them. In addition, since Ann is expected to be rendering the majority of the services on behalf of the partnership, the partners have agreed that she will receive $3,000 per month in addition to her 25% distributive share. For the year 2020, the partnership had short-term capital loss of $28,000, long-term capital gain of $54,000 and bottom line ordinary income (before considering the additional payments to Ann) of $21,000. What is the amount and character of partnership income and loss that Ann, Beth, Chris and Dan must include from the ABCD partnership on their 2020 income tax returns?
- 23.Carolina and Alfonso form TikTuk general partnership. Each person receives an equal interest in the newly created partnership. Carolina contributes $15,000 of cash and land with an FMV of $60,000. Her basis in the land is $25,000. Alfonso contributes equipment with an FMV of $18,000 and a building with an FMV of $27,000. His basis in the equipment is $6,000, and his basis in the building is $12,000. How much gain must the TikTuk general partnership recognize on the transfer of these assets from Carolina and Alfonso? Explain your answerShirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank youMilton has a basis in his partnership of $300,000, including his $80,000 share of partnership liabilities. At the end of the current year the partnership pays off the liabilities and makes a proportionate current distribution to its partners. Milton receives a parcel of land (partnership basis of $120,000 and FMV of $135,000) and inventory (partnership basis of $160,000 and FMV of $180,000). Following the distribution what is Milton's basis in the inventory? I'm not sure if it's 160,000 or not
- Nancy and Perry are partners, and each has a capital balance of P100,000. To gain admission to the partnership, Mitch pays P52,000 directly to Nancy for one-half of her equity. After the admission of Mitch, the total partners' equity in the records of the partnership will beCheryl and Joseph formed a partnership. Cheryl received a 50% interest in partnership capital and profits in exchange for contributing land with a basis of $140,000 and a fair market value of $300,000. Joseph received a 50% interest in partnership capital and profits in exchange for contributing $300,000 of cash. Three years after the contribution date, the land contributed by Cheryl is sold by the partnership to a third party for $380,000. How much taxable gain will Cheryl recognize from the sale? a) $40,000 b) $120,000 c) $160,000 d) $200,000 e) None of the aboveFor a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000. The parmenship assumes $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Following the contribution, Carol O a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest. O a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest. O a $34,000 basis in the partnership interest and no gain or loss. O a $43,000 basis in the partnership interest and no gain or loss.
- Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows: Liam $450,000 Michael 350,000 Noah 200,000 Partnership income is shared in a 1:5:4 ratio. Olivia buys a 20% interest in the partnership by acquiring 20% of each existing partner's interest, paying the three partners a total of $300,000. Partnership identifiable net assets are currently reported at amounts approximating fair value. Using the recognition of implied goodwill approach, implied goodwill is: Select one: a. $500,000 b. $800,000 c. $300,000 d. $100,000Greene and Whatley formed a partnership at the beginning of the year, agreeing to share capital and profits equally. Greene contributed $50,000 cash. Whatley contributed land with an adjusted basis to him of $20,000 and a fair market value of $54,000 at the time of contribution. The land is subject to a $8,000 mortgage, which is assumed by the partnership. Whatley's tax basis in the partnership after the contribution is A. $12,000 B. $16,000 C. $50,000 D. None of these E. $20,000Eddie and Elizabeth are equal partners in a partnership that owns (i) publicly traded stock held for investment with a tax basis of $500,000 and a value of $550,000 and (ii) other assets, which are capital assets, that have a tax basis of $1,000,000 and a value of $200,000. If Eddie, a dealer in publicly traded stock who bas an outside basis of $750,000, sells his interest in the partnership to Richard for $375,000, how much gain or loss is recognized? What is the character of the gain or loss?