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c. If Padgett sells the land several years later for $443,250, how much tax gain will Nova and Oscar report? Nova reports as 295,500✔ gain and Oscar's gain is $ 184,688 X.

c. If Padgett sells the land several years later for $443,250, how much tax gain will Nova and Oscar report? Nova reports as 295,500✔ gain and Oscar's gain is $ 184,688 X.

FINANCIAL ACCOUNTING
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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c. If Padgett sells the land several years later for $443,250, how much tax gain will Nova and Oscar report? Nova reports as 295,500✔ gain and Oscar's gain is $ 184,688 X.
Transcribed Image Text:c. If Padgett sells the land several years later for $443,250, how much tax gain will Nova and Oscar report? Nova reports as 295,500✔ gain and Oscar's gain is $ 184,688 X.
When Padgett Properties LLC was formed, Nova contributed land (value of $295,500 and basis of $73,875) and $147,750 cash, and Oscar contributed cash of $443,250. Both partners received a 50% interest in partnership profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at s 295,500
Transcribed Image Text:When Padgett Properties LLC was formed, Nova contributed land (value of $295,500 and basis of $73,875) and $147,750 cash, and Oscar contributed cash of $443,250. Both partners received a 50% interest in partnership profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at s 295,500
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