Evona, an equal partner, sold her partnership interest to Zach, an outsider, for $154,000 cash on January 1, Year 2, when Evona's basis in the partnership was $34,000. In addition, Zach assumed Evona's share of the partnership's liability. What was the total amount realized by Evona on the sale of her partnership interest? A. $174,000 B. $154, 000 C. $140,000 D. $134,000
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- (J) The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided that profits or losses be shared between the partners in the ratio of their financial contributions to the partnership. Wilson contributed $65,000, Pickett contributed $39,000 and Nelson contributed $13,000. In the partnership's first year of operation, it incurred a loss of $184,500. What amount of the partnership's loss is allocated to Nelson? Multiple Choice : $46,125 $92,250 $61,500 $20,500 $0Renata sold her interest in a partnership for $31,000 cash when her outside basis was $18,000. She was relieved of her $29,000 share of partnership liabilities. What is Renata's realized value from the sale of her partnership interest? $31,000 $42,000 $47,000 $60,000Antonio and Barbara are partners who share income in the ratio of 1.2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80.000 What amount of loss on realization should be allocated to Barbara? a. $30.000 O b. sso 000 C. S10,000 d. s20.000-
- Faith, Hope, and Love are partners sharing profits and losses in the ratio 22 1 and have capital balances of P800,000, P800,000, and P400,000, respectively. Grace purchases half of Faith's interest by paying her directly for an amount that earned her a profit of P60,000. The entry to record the admission of Grace in the partnership includes a Select the correct response debit to Cash, P460,000 credit to Grace, Capital, P400,000 credit to Grace, Capital, P460,000 debit to Faith, Capital, P460,000pvn.213
- The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital $ 960,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)12a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership: Basis Fair Market Value Harry: Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally: Equipment used in a business 200,000 150,000 Totals $ 200,000 $ 150,000 What is Sally’s tax basis in her partnership interest?1. A, B and C, three individuals, form a general partnership by contributing the following property in exchange for equal 1/3 interests in the partnership's capital, profits, and losses: A contributes land, a capital asset that A acquired several years ago, worth $100 in which A has a tax basis of $40. contributes machinery with a basis of $25 and a value of $60, plus $40 in cash. purchased the machinery several years ago for $75 and has taken $50 of depreciation. contributes inventory with a value of $100 in which has a basis of $90. What gain and/or loss will be recognized by the partners and the partnership on formation? What will be the partnership's "inside basis" and holding period for each of the contributed assets? What will be the partners' "outside bases" and holding period for their partnership interests?
- The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital Answer each of the following independent questions: $ 200,000 180,000 170,000 160,000 $ 710,000 a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $194,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $310,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Pineda Adams Gomez b. Adams Fergie Gomez Capital BalanceThe E.N.D. partnership has the following capital balances as of the end of the current year: Pineda 160,000 Adams 140,000 Fergie 130,000 Gomez 120,000 Answer each A. Assume that the partners and losses 3:3:2:2,respectively. Fergie retires and is paid 151,000 based on the terms of the orginal partnership agreement. If the Goodwill method is used;what is the capital of the remaining three partners? B. Assume that the partners share profit and losses 4:3:2:1, respectively. Peneda retires and is paid 305,000 based on the terms of the orginal partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round intermediate calculations. Round to the nearest amounts. A. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________ B. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________Individuals A and B carry on business through a partnership. A and B are both active in the business and share profits equally after deducting partner salaries. In the current year the partnership paid salaries of $80,000 to A and $50,000 to В. The partnership reported net income of $ 160,000 after partner salaries. The net income includes a gain of $28, 000 on the sale of non - depreciable Gapital property, $14, 000 of eligible dividends, and a deduction of $2, 000 for charitable donations. Determine A's share of the partnership net income for tax purposes. $