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oe and Andrew form the ZA General Partnership as equal partners. They make the following contributions: lew the contributions. he ZA Partnership assumes the $50,000 recourse mortgage on the building that Andrew contributes, and the partners share the economic risk of loss on the mortgage equally. Andrew has claimed $34,000 in straight-line depreciation under the MACRS rules on the uilding. Zoe is a stockbroker and contributed securities from her inventory. The partnership will hold them as an investment Read the requirements. Individual Coe Andrew Cash mventory and Building tequirement c and d. What is the partnership's basis in each asset? What is the partnership's initial book value of each asset? Partnership's Initial Book Value Basis in Asset of Asset Asset Interest 92,000 40,000 Individual Loe Andrew Total 55,000 $ 12,000 30,000 35,000 55,000 18,000 20,000 115,000 tequirement e. The partnership holds the securities for two years and then sells them for $30,000. What amount and character of gain must the partnership and each partner report? legin by determining the gain or loss realized on the sale of the securities. (Enter a loss with a minus sign or parentheses.) Readlized gain (loss) = $ 18,000 ETTE Contributions Individual Zoe Zoe Andrew Andrew Asset Cash Inventory (securities) Land Building low show how much gain or loss, if any, each partner will recognize on the sale of the securities. (Enter a loss with a minus sign or parentheses. Complete all input fields. Enter a 0 if no gain or loss is recognized by the partner.) Precontribution Gain (Loss) on the Gain (Loss) Sale Print Basis to Partner FMV $ Done 55,000 $ 55,000 12,000 18,000 20,000 115.000 30,000 35.000 - X

oe and Andrew form the ZA General Partnership as equal partners. They make the following contributions: lew the contributions. he ZA Partnership assumes the $50,000 recourse mortgage on the building that Andrew contributes, and the partners share the economic risk of loss on the mortgage equally. Andrew has claimed $34,000 in straight-line depreciation under the MACRS rules on the uilding. Zoe is a stockbroker and contributed securities from her inventory. The partnership will hold them as an investment Read the requirements. Individual Coe Andrew Cash mventory and Building tequirement c and d. What is the partnership's basis in each asset? What is the partnership's initial book value of each asset? Partnership's Initial Book Value Basis in Asset of Asset Asset Interest 92,000 40,000 Individual Loe Andrew Total 55,000 $ 12,000 30,000 35,000 55,000 18,000 20,000 115,000 tequirement e. The partnership holds the securities for two years and then sells them for $30,000. What amount and character of gain must the partnership and each partner report? legin by determining the gain or loss realized on the sale of the securities. (Enter a loss with a minus sign or parentheses.) Readlized gain (loss) = $ 18,000 ETTE Contributions Individual Zoe Zoe Andrew Andrew Asset Cash Inventory (securities) Land Building low show how much gain or loss, if any, each partner will recognize on the sale of the securities. (Enter a loss with a minus sign or parentheses. Complete all input fields. Enter a 0 if no gain or loss is recognized by the partner.) Precontribution Gain (Loss) on the Gain (Loss) Sale Print Basis to Partner FMV $ Done 55,000 $ 55,000 12,000 18,000 20,000 115.000 30,000 35.000 - X

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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Zoe and Andrew form the ZA General Partnership as equal partners. They make the following contributions: View the contributions. The ZA Partnership assumes the $50,000 recourse mortgage on the building that Andrew contributes, and the partners share the economic risk of loss on the mortgage equally. Andrew has claimed $34,000 in straight-line depreciation under the MACRS rules on the building. Zoe is a stockbroker and contributed securities from her inventory. The partnership will hold them as an investment. Read the requirements. Individual Zoe Andrew $ Requirement c and d. What is the partnership's basis in each asset? What is the partnership's initial book value of each asset? Initial Book Value of Asset Individual Zoe Asset Andrew Total Interest 92,000 40,000 Partnership's Basis in Asset 55,000 $ 12,000 30,000 35,000 Precontribution Gain (Loss) 55,000 18,000 20,000 115,000 C Contributions Individual Cash Inventory Land Building Requirement e. The partnership holds the securities for two years and then sells them for $30,000. What amount and character of gain must the partnership and each partner report? Begin by determining the gain or loss realized on the sale of the securities. (Enter a loss with a minus sign or parentheses.) Readlized gain (loss) = $ 18,000 Now show how much gain or loss, if any, each partner will recognize on the sale of the securities. (Enter a loss with a minus sign or parentheses. Complete all input fields. Enter a 0 if no gain or loss is recognized by the partner.) Gain (Loss) on the Sale Zoe Zoe Andrew Andrew Asset Cash Inventory (securities) Land Building Print Basis to Partner FMV $ Done 55,000 55,000 $ 12,000 18,000 30,000 20,000 35,000 115,000 X
Transcribed Image Text:Zoe and Andrew form the ZA General Partnership as equal partners. They make the following contributions: View the contributions. The ZA Partnership assumes the $50,000 recourse mortgage on the building that Andrew contributes, and the partners share the economic risk of loss on the mortgage equally. Andrew has claimed $34,000 in straight-line depreciation under the MACRS rules on the building. Zoe is a stockbroker and contributed securities from her inventory. The partnership will hold them as an investment. Read the requirements. Individual Zoe Andrew $ Requirement c and d. What is the partnership's basis in each asset? What is the partnership's initial book value of each asset? Initial Book Value of Asset Individual Zoe Asset Andrew Total Interest 92,000 40,000 Partnership's Basis in Asset 55,000 $ 12,000 30,000 35,000 Precontribution Gain (Loss) 55,000 18,000 20,000 115,000 C Contributions Individual Cash Inventory Land Building Requirement e. The partnership holds the securities for two years and then sells them for $30,000. What amount and character of gain must the partnership and each partner report? Begin by determining the gain or loss realized on the sale of the securities. (Enter a loss with a minus sign or parentheses.) Readlized gain (loss) = $ 18,000 Now show how much gain or loss, if any, each partner will recognize on the sale of the securities. (Enter a loss with a minus sign or parentheses. Complete all input fields. Enter a 0 if no gain or loss is recognized by the partner.) Gain (Loss) on the Sale Zoe Zoe Andrew Andrew Asset Cash Inventory (securities) Land Building Print Basis to Partner FMV $ Done 55,000 55,000 $ 12,000 18,000 30,000 20,000 35,000 115,000 X
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