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If Monarch is a partnership, Helen's partnership interest basis at the end of the year If Monarch is an S-Corp, Helen's stock basis at the end of the year If Monarch is an S-Corp, Helen's loan basis at the end of the year

If Monarch is a partnership, Helen's partnership interest basis at the end of the year If Monarch is an S-Corp, Helen's stock basis at the end of the year If Monarch is an S-Corp, Helen's loan basis at the end of the year

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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Please help me complete part B
a) On January 1st of this year, Helen acquired a 1/4 interest in TreadwelI LLC (a partnership). Helen contributed some land she held for investment. She purchased the land for $200,000, but the land increased in value and was worth $220,000 on the date of contribution. A few years later, Treadwell LLC sells the land for $320,000. At the beginning of that year, Helen's capital account was $200,000. 1. Compute the gain or loss to Treadwell LLC when it sold the landLO0,000 Value of land 320k valre cantr. 220k SL00,00O 9ain 225,000 2. Compute the capital account for Helen imnmediately after the sale Beg. Cap. BalH Goin 200K an Land 25K $225,000 End.Bal b) Helen's basis in Monarch is 30,000 at the beginning of the tax year, and she owns 20% of the business. During the year, Monarch had the following items: 10,000 20,000 15,000 20,000 20,000 Ordinary Income: Tax-Free Interest Income: Penalties and fines: Loan 1 (from Helen to Monarch): Loan 2 (from Greedy Bank to Monarch): Compute the following: If Monarch is a partnership, Helen's partnership interest basis at the end of the year If Monarch is an S-Corp, Helen's stock basis at the end of the year If Monarch is an S-Corp, Helen's loan basis at the end of the year
Transcribed Image Text:a) On January 1st of this year, Helen acquired a 1/4 interest in TreadwelI LLC (a partnership). Helen contributed some land she held for investment. She purchased the land for $200,000, but the land increased in value and was worth $220,000 on the date of contribution. A few years later, Treadwell LLC sells the land for $320,000. At the beginning of that year, Helen's capital account was $200,000. 1. Compute the gain or loss to Treadwell LLC when it sold the landLO0,000 Value of land 320k valre cantr. 220k SL00,00O 9ain 225,000 2. Compute the capital account for Helen imnmediately after the sale Beg. Cap. BalH Goin 200K an Land 25K $225,000 End.Bal b) Helen's basis in Monarch is 30,000 at the beginning of the tax year, and she owns 20% of the business. During the year, Monarch had the following items: 10,000 20,000 15,000 20,000 20,000 Ordinary Income: Tax-Free Interest Income: Penalties and fines: Loan 1 (from Helen to Monarch): Loan 2 (from Greedy Bank to Monarch): Compute the following: If Monarch is a partnership, Helen's partnership interest basis at the end of the year If Monarch is an S-Corp, Helen's stock basis at the end of the year If Monarch is an S-Corp, Helen's loan basis at the end of the year
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