Justin and Kyle are equal (50%) partners. The partnership’s balance sheet (including FMV) is below.  At the end of the year, Justin sold his partnership interest to Leslie for $15,000.   Assets   FMV     Book Tax Debt Book Tax Cash 5,000 5,000 5,000       Inventory A 10,000 10,000 10,000       Inventory B 10,000              6,000 6,000 Capital     Stock 5,000 11,000 11,000 Justin 16,000 16,000         Kyle 16,000 16,000   What are the tax consequences to Justin of the sale? How much of the gain/loss is capital/ordinary?   Assuming the partnership has a section 754 election, what is the amount of the section 743(b) adjustment? How is it allocated among the partnership’s assets?

On February 3, 2016 Sam Singh invested $90,000 cash for a 1/3 interest in a newly formed partnership. Prepare the journal entry to record the transaction.

Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $60,000 to the partnership for a 1/3 share. What amount should the partnership record as an individual bonus to each of the old partners? A. $10,000 B. $7,000 C. $0 D. $5,000

The E.N.D. partnership has the following capital balances as of the end of the current year:         Pineda $ 190,000 Adams   170,000 Fergie   160,000 Gomez   150,000 Total capital $ 670,000     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 $203,000 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 $290,000 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.)

The E.N.D. partnership has the following capital balances as of the end of the current year:         Pineda $ 150,000 Adams   130,000 Fergie   120,000 Gomez   110,000 Total capital $ 510,000     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 $160,000 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 $285,000 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.)         Capital Balance a. Pineda     Adams     Gomez   b. Adams     Fergie     Gomez

The E.N.D. partnership has the following capital balances as of the end of the current year:         Pineda $ 300,000 Adams   270,000 Fergie   260,000 Gomez   250,000 Total capital $ 1,080,000     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 $297,000 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 $345,000 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?

The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:         Tiger (40%) $ 125,000 Phil (20%)   95,000 Ernie (40%)   110,000     Each of the following questions should be viewed independently.   If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $140,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows: Liam $450,000 Michael 350,000 Noah 200.000 Partnership income is shared in a 1:5:4 ratio. Olivia buys a 20% interest in the partnership by acquiring 20% of each existing partner's interest, paying the three partners a total of $300,000. Partnership identifiable net assets are currently reported at amounts approximating fair value. Using the transfer of capital interests approach, Liam's capital balance immediately following admission of Olivia is:

Sadie and Sam share income equally. For the current year, the partnership net income is $40,000. Sadie made withdrawals of $14,000 and Sam made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Sadie, Capital, $42,000; Sam, Capital, $58,000. Sam's capital account balance at the end of the year is   Question 7 options:   $78,000   $43,000   $63,000   $93,000

Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows: Liam $450,000 Michael 350,000 Noah 200,000 Partnership income is shared in a 1:5:4 ratio. Olivia buys a 20% interest in the partnership by acquiring 20% of each existing partner's interest, paying the three partners a total of $300,000. Partnership identifiable net assets are currently reported at amounts approximating fair value. Using the recognition of implied goodwill approach, implied goodwill is: Select one: a. $500,000 b. $800,000 c. $300,000 d. $100,000