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
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 22P
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Question
Please help fill out the chart, and make it obvious
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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