Gordon transfers a building with a $200,000 market value. $100,000 basis in addition to a $110,000 nonrecourse debt on the building, to a partnership in exchange for a 50 percent capital nterest. The partnership has no other debt. If 50 percent of the nonrecourse debt is allocated to Gordon, what gain or loss must Gordon recognize? which of these options: 1.$45,000 gain 2. no jain or loss recognzied 3. 10,000 gain 4. (45,000) loss 5. 55,000 gain

Gordon transfers a building with a $200,000 market value. $100,000 basis in addition to a $110,000 nonrecourse debt on the building, to a partnership in exchange for a 50 percent capital nterest. The partnership has no other debt. If 50 percent of the nonrecourse debt is allocated to Gordon, what gain or loss must Gordon recognize? which of these options: 1.$45,000 gain 2. no jain or loss recognzied 3. 10,000 gain 4. (45,000) loss 5. 55,000 gain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

not use ai please
Jessica and Rufus admit Jose as a 25% partner for a contribution of $120, 000 Jessica has capital and a profit /loss ratio of $280, 000 and 70%, respectively. Rufus has capital and a profit/loss ratio of $150, 000 and 30%, respectively. The three parties agree that some of the partnership's investment assets are overvalued. What is the entry to correct this overvaluation? (You do not need to write the entry to admit Jose.) don't use ai answer,i will 5 upvotes
A&B form a partnership with A being the limited partner (LP)who will invest $150,000 and B being the general partner (GP). The group finds a property for $700,000 and takes a mortgage for $550,000, interest only at 6%. They agree to a 90/10 split on the profits and distributions while the property is owned by the group. Assume the following: Gross Income- $125,000 LESS VACANCY- $6,250 LESS OPERATING EXPENSES - $27,000 What is the capital account of investor A (the LP) $87,000 $97,125 $139,875 $150,000
Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership
Which of the following would be classified as disproportionate distributions? Assume A and B each own 50% interests in the AB Partnership, the partnership owns hot assets, and the partners remain partners in AB partnership. Question 18 options: a. Partner A receives $6,000 cash and Partner B receives a capital asset valued at $6,000. b. Partner A received $6,000 cash and Partner B receives inventory items valued at $6,000 (basis $3,500). c. Both partners receive unrealized accounts receivables with a basis of $0 and a value of $6,000. d. Items a. and c. represent disproportionate distributions e. Items b. and c. represent disproportionate distributions.
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.