Kindly help me with this question general Accounting John and Yi formed the X partnership on June 16,20X6. They agreed to equally split profits and losses.John contributed $20,000 cash and Yi contributed amachine with a basis of $5,000 (FMV $50,000) subjectto a mortgage of $30,000 on June 17, 20X6. Yi's holdingperiod for the machine began on May 2, 20X4.The X partnership's tax basis for the propertycontributed by Yi is:a. $50,000b. $45,000c. $20,000d. $5,000

Partnership Basis: When a partner contributes property to a partnership, the partnership's basis in…

Answered: John and Yi formed the X partnership on…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 12CE

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Similar questions

Greene and Whatley formed a partnership at the beginning of the year, agreeing to share capital and profits equally. Greene contributed $50,000 cash. Whatley contributed land with an adjusted basis to him of $20,000 and a fair market value of $54,000 at the time of contribution. The land is subject to a $8,000 mortgage, which is assumed by the partnership. Whatley's tax basis in the partnership after the contribution is A. $12,000 B. $16,000 C. $50,000 D. None of these E. $20,000
Hay, Straw, and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year. The following tax information is provided: Net income from operations (before guaranteed payment) Guaranteed payment $90,000 $30,000 What is Clover's share of the partnership's ordinary income and guaranteed payment? A) Ordinary income: $20,000; guaranteed payment $30,000 B) Ordinary income: $30,000; guaranteed payment $10,000 C) Ordinary income: $20,000; guaranteed payment $10,000 D) Ordinary income: $30,000; guaranteed payment $30,000
Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
. Mark and Erik formed the M&E partnership as equal partners. The following assets were contributed: Asset adjusted basis fair market valve mark cash 60.000 60.000 Eric Land 50.000 70.000 The land was subject to a $10,000 mortgage that was assumed by the partnership. Calculate the initial tax basis for the partnership interests of Mark and Erik
Subject: accounting
John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. John’s salary is P180,000 and Paul’s is P140,000. The partners are paid interest on their average capital balances where John received interest of P 30,000 and Paul, P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received P280,000 from partnership income, what was the total partnership income? Please provide a good accounting form in the solution. Thank you
Mike and Melissa form the equal MM Partnership. Mike contributes cash of $40,000 and land (fair market value of $100,000, adjusted basis of $136,000), and Melissa contributes the assets of her sole proprietorship (value of $140,000, adjusted basis of $115,000). What are the tax issues that should be considered by Mike, Melissa, and MM on the formation of the partnership? What are the tax consequences of these issues? Continue with the facts presented in Problem 31. Mike purchased the land (value of $100,000; adjusted basis of $136,000) several years ago as an investment (capital) asset. Mike and MM LLC are trying to decide between two alternatives. In Alternative 1, Mike will contribute the land to the LLC. MM will use the property as a § 1231 asset (a parking lot) and then sell it in six years at an estimated $100,000 price. (Disregard any potential improvements to the land.) In Alternative 2, Mike will sell the land immediately to a third party and contribute to MM the $100,000…
At the beginning of the tax year, Barnaby’s basis in BBB Partnership was $50,000, including his $5,000 share of partnership debt. At the end of the tax year, his share of debt was $8,000. His share of the partnership’s income for the year was $20,000, and he received distributions totaling $12,000. In addition, his share of the partnership’s nontaxable income was $1,000. How much is Barnaby’s basis at the end of the tax year? Show your calculations.
Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder divided equally. How much of the net loss of $16,000 is allocated to Seth?
tiara, lauryn and camee formed tl&c, a general partnership, as equal partners. Tiara contributed 55000. cash. Lauryn contributed 25000. cashand property with an adjusted pasis of 25000. and a FMV of 35000. Camee contributed property with an adjusted basis if 43000. and a FMV of 55000. The partnership made 90000. in ordinary income for the yhear and there were no cash or property distributions. What is Tiara's ending tax capital account?
Robin and Nissan are the owners of a gift shop. They are partners in a partnership of the shop. They share profits and losses equally under the partnership agreement. In addition, Robin receives salaries of $60,000 every year from the partnership for taking on the daily management role in the shop. In this income year, the partnership makes a loss of $90,000 after deducting the salaries paid to Gary. Required: Explain the tax implications of Robin and Nissan in this income year.
The ABCD Partnership owns the following assets on December 30 of the current year: View the assets. View the additional information. Requirement What are the tax consequences of the distribution to the partnership, Alana, and the other partners? Start by completing a Sec. 751 nonliquidating distribution analysis. (If an input field is not used in the table or the balance is 0, leave the field empty; do not enter a zero. Round to the nearest dollar. Use a minus sign or parentheses in the Difference column if Alana gave up her interest in a particular property.) Sec. 751 assets: Total Sec. 751 assets Non-Sec. 751 assets: Total non-Sec. 751 assets Beginning Partnership Amount Alana's Interest Before Distribution (1/4) Alana's Interest After Hypothetical Distribution Proportionate (1/5) Distribution (…) Actual Distribution Difference Assets Assets Cash Receivables Inventory Total $ Partnership's Basis $ Additional Information 100,000 $ 0 77,000 177,000 $ FMV 100,000 36,000 110,000 246,000…

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