During the current year, Tristan sells land to Orange Corporation for $185,000. Tristan purchased the land for investment in 2002 for $207,500. Orange Corporation is owned as follows: (Click the icon to view the ownership of Orange Corporation.) Tristan and Jay are equal partners in a separate entity, TJ Partnership. Read the requirements. Requirement a. What is Tristan's constructive ownership in Orange Corporation? Complete the table below to determine Tristan's constructive ownership in Orange Corporation. (Enter percentages as whole percent, X%. Enter a "0" for ownership with a zero percentage.) Owner Tyson (Tristan's son) Jay (Tristan's cousin) Jay's father (Tristan's uncle) Ann (Tristan's wife) Nikki (Ann's sister) Total Percentage Ownership 5% 15% 25% 30% 25% 100% Tristan's contructive ownership (%) % % % % % %

During the current year, Tristan sells land to Orange Corporation for $185,000. Tristan purchased the land for investment in 2002 for $207,500. Orange Corporation is owned as follows: (Click the icon to view the ownership of Orange Corporation.) Tristan and Jay are equal partners in a separate entity, TJ Partnership. Read the requirements. Requirement a. What is Tristan's constructive ownership in Orange Corporation? Complete the table below to determine Tristan's constructive ownership in Orange Corporation. (Enter percentages as whole percent, X%. Enter a "0" for ownership with a zero percentage.) Owner Tyson (Tristan's son) Jay (Tristan's cousin) Jay's father (Tristan's uncle) Ann (Tristan's wife) Nikki (Ann's sister) Total Percentage Ownership 5% 15% 25% 30% 25% 100% Tristan's contructive ownership (%) % % % % % %

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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9
Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y Mountain Partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by a $142,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain Partnership does not have any liability. b. What is Cosmo's tax basis in his partnership interest? Please only typing answer
None
Andy has an outside basis in Canine Partnership of $520,000. The partnership distributes the following assets to Andy in a proportionate, non-liquidating distribution: Land (fair market value of $6000,000 and basis to partnership of $240,000 Cash of $100,000 Accounts receivable (fair market value of $200,000 and basis of $0) How much gain of loss will Canine Partnership recognize from this distribution?
[The following information applies to the questions displayed below.] Bryce's basis in the Markit Partnership is $58,000. In a proportionate liquidating distribution, Bryce receives the following assets: Cash FMV Tax Basis $8,000 $8,000 Land A $20,000 $45,000 Land B $20,000 $25,000 (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) b. What is Bryce's basis in the distributed assets? Basis Land A Land B
Tyler and Sarah formed the equal TS Partnership on January 1 of the current year. A contributed $100,000 of cash and land with a fair market value of $112,500 and an adjusted basis of $93,750. Sarah contributed equipment with a fair market value of S212,500 and an adjusted basis of $25,000. Sarah had used the equipment in his sole proprietorship. Compute the following: Tyler's gain realized: 212,500 Sarah's gain realized: 212,500 Tylers's gain recognized: 118,750 Sarah's gain recognized: TS's gain recognized: Tyler's basis in his partnership interest: Sarah's basis in his partnership interest:
A and B formed the equal AB Partnership on January 1 of the current year. A contributed $100,000 ofcash and land with a fair market value of $112,500 and an adjusted basis of $93,750. B contributedequipment with a fair market value of $212,500 and an adjusted basis of $25,000. B had used theequipment in his sole proprietorship.Compute the following: B’s gain recognized__________________________ AB’s gain recognized__________________________ A’s basis in his partnership interest__________________________ B’s basis in his partnership interest__________________________
Zoey contributed land with a tax basis of $45,000 and a fair market value of $100,000 in exchange for a 20% percent interest in the new formed ZAT Partnership. All other partners contributed cash and ZAT partnership has no liabilities. What is Zoey’s basis in her partnership interest in ZAT Partnership?
Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $124,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $56,000 and was appraised at $180,000. The land was also encumbered with a $56,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,200 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: $ 480,000 470,000 70,000 1,500 600 Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions 300 Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) 300 3,000 c. Using the…
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Zoey contributed land with a tax basis of $45,000 and a fair market value of $100,000 in exchange for a 20% percent interest in the new formed ZAT Partnership. All other partners contributed cash and ZAT partnership has no liabilities. How much income must Zoey recognize as a result of the transaction? Question 4 options: a) $0. b) $20,000. c) $45,000. d) $55,000. e) $100,000.
Eddie 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?