Lemon and Parks are partners. On October 1, Lemon's capital balance is $75,000, and Parks' capital balance is $125,000. With the partnership's approval, Parks sells ½ of his partnership interest to Tambling for $70,000. Prepare the journal entry to record this transaction in the partnership records.
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) Lemon and Parks are partners. On October 1, Lemon's capital balance is $75,000, and Parks' capital balance is $125,000. With the partnership's approval, Parks sells ½ of his partnership interest to Tambling for $70,000. Prepare the
journal entry to record this transaction in the partnership records.
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- The following statement of financial position account balances for the partnership of Pierce, Garnett, and Rondo are the following: Cash-P 160.000; Other assets - P 320,000Liabilities-P 180,000; Pierce, Capital-P 48.000, Garnett. Capital-P216,000; Rondo, Capital - P36,000. The partners agree to dissolve the partnership after selling the other assets. If Pierce is to receive a final settlement of P 180,000, how much should be the proceeds from sale of the non-cash assets? assuming that the non-cash assets were sold 2 pots at a loss of P 70,000. how much would be the total capital of the partners immediately before final distribution of cash? assuming that the non-cash assets were sold for P 120,00. how much would be received by Garnett in the final distribution of cash? Assume that any partner incurring a capital deficiency is insolvent.When Abe's outside basis in the Vacuna Partnership is $211,000, the partnership distributes to him $36,000 cash, three accounts receivable (fair market value of $61,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $484,000, inside basis to the partnership of $420,000). Abe remains a partner in the partnership, and the distribution is proportionate to the partners. If an amount is zero, enter "0". a. Does the partnership recognize a gain or loss as a result of this distribution? (gain, loss, no gain or loss) b. As a result of the distribution, Abe recognizes .(a gain, a loss, neither a gain or loss) c. In what order are the assets distributed to Abe? (land, accounts receivable, cash) Calculate Abe's basis in the land, in the accounts receivable, and in his partnership interest immediately following the distribution.Accounts receivable: Land: Partnership interest:Amy and Mitchell are equal partners in the accrual basis AM Partnership.At the beginning of the current year, Amy’s capital account has a balance of $300,000, and the partnership has recourse debts of $200,000 payable to unrelated parties. Assume that all partnership recourse debt is shared equally between the partners. The following information about AM’s operations for the current year is obtained from the partnership’s records. Ordinary income $400,000 Interest income $4,000 Long-term capital loss $6,000 Short-term capital gain $12,000 Charitable contribution $4,000 Cash distribution to Amy $20,000 Assume that year-end partnership debt payable to unrelated parties is $140,000. If all transactions are reflected in her beginning capital and basis in the same manner, what is Amy’s basis in the partnership interest: At the beginning of the year? At the end of the year? What income, gains, losses, and deductions does Amy report on her income tax return? Based on the information…
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