nterest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is her basis in the distributed inventory and in her partnership interest following the distribution?

nterest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is her basis in the distributed inventory and in her partnership interest following the distribution?

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

Please do not give solution in image format ?
C. Shelton contributed land, inventory and $58,000 cash to a partnership. The land had a book value of $20,000 and a market value of $48,000. The inventory had a book value of $50,000 and a market value of $45,000. In the journal entry to record Shelton's contribution to the partnership, for what amount should inventory be debited? JOURNAL Date Description P.Ref DEBIT CREDIT Inventory ? (2) (2) Group of answer choices $58,000 $50,000 $48,000 $45,000
. Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis FMVCash $40,000 $40,000Inventory $30,000 $45,000Unrealized receivables $50,000 $45,000 Z’s basis in her partnership interest was $95,000. What is her gain or loss and the bases of the assets distributed to her?
Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Lewis, $34,000 Cr.; Zapata, $74,800 Cr.; Fowler, $21,800 Dr. Question Content Area a. What term is applied to the debit balance in Fowler's capital account? b. What is the amount of cash on hand?$fill in the blank 28030402ff86fa0_2 Question Content Area c. Journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select -
Pablo has a $194,600 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in a proportionate current distribution, cash of $77,840, cash basis receivables with an inside basis of $0 and a fair market value of $48,650, and land with a basis and fair market value to the partnership of $252,980. If an amount is zero, enter "0". How much is Pablo's realized and recognized gain on the distribution? Pablo has a realized gain on the distribution of $ b. and a recognized gain of $ What is Pablo's basis in the receivables, land, and partnership interest following the distribution? The receivables have a basis of $ and the land has a basis of $ to Pablo. His basis in his partnership interest after the distribution is $
Cindy has a $4,000 basis in the partnership. She receives (if it does not say liquidating, it is a current distribution) property with a $4,500 basis and FMV of $6,000. What is her basis?
Bhola
DeWar's basis in the DW Partnership is $116,000. In aproportionate liquidating distribution, DeWar receives the assets: Tax Basis FMV Cash $16,000 $16,000 Plot- New Albany 40,000 90,000 Plot- Gahanna 40,000 50,000 A. How much gain or loss will DeWar recognize on the distribution? What is the character of any recognized gain or loss? B. What is DeWar's basis in the distributed assets?
Assume that partners A and B share all profits and losses in the ratio of 3:2. Partner B has $100,000 credited to her Partnership Capital account when net income is allocated at year‐end. The amount of partnership net income for the year is ??? Why is the answer = $250,000?
Katrina was an S corporation shareholder. After her initial contributions, she had the following tax bases: 1) Basis in stock: $50,000 2) Basis in personal loan to S corp: $20,000 Over the first two years of the corporation's existence, the corporation experienced significant operating losses and Katrina's pass- through share of these was $60,000. Katrina materially participated in the S corporation's business. Which of the following statements regarding Katrina's tax situation is false? These were deductible losses to Katrina Katrina could deduct only $50,000 of the pass through losses. The remaining $10,000 was suspended. After these losses, Katrina had a $0 basis in stock and a $10,000 basis in loan none of the above
A’s outside basis in a partnership is $20,000. She receives properties C and D in liquidation of his partnership interest. Neither property C and D is inventory or unrealized receivables. Property C’s FMV and adjusted basis to the partnership are $15,000. Property D has an adjusted basis to the partnership of $15,000 and a FMV of $5,000. What is A’s basis in property C and D following the liquidation of the partnership?
1. what is katrina's basis in each of the assets? 2. what is katrina's gain or loss if she sells all of the assets the next day Katrina is a one-third partner in the KYR partnership (calendar year-end). Katrina decides she wants to exit the partnership and she receives the following assets in the liquidating distribution. Katrina's basis in her partnership interest is $280,000. Basis FMV Cash 60,000 60,000 Inventory 50,000 90,000 Machinery 50,000 45,000 Land 40,000 105,00 Totals 200,000 300,000