Enter problem statement, appropriate input type, and other instructions here.On January 1, 2019. pele's tax basis in the ABC General partnership is $500,000. Pete has a 40 % interest in DE 's capital, profits and losses. During 2019, the partnership paid ofaS600,000 recourse loan, had an ordinary loss of $200,000 , received S400,000 of municipal bond interest, paid an EPA fine of $300,000 and recognized a $20,000 long term capital loss. Athe end of 2019. what is Pete's tax basis in ABC ?OA S420,000OB. $332,000Oc. $452,000OD. $212.000

Partnership basis shall refer to the adjusted basis of the contributions by the partner for the…

On January 1, 2019. pete's ta besis in the ABC General partrership is $500,000. Pete has a40S interest in DE s capital,profits and losses. During 2019, the partnership paid ofa Se00.000 recourse loan, had an ordinary loss of $200,000, received $400,000 of municipal bond interest.paid an EPA fine of $300.000 and recognizeda $20.000 long em capta loss A the end of 2019. what is Pete's tax besis in ABC? OA S420.000 OB $332.000 OC $452.000 OD. S212.000

On January 1, 2019. pete's ta besis in the ABC General partrership is $500,000. Pete has a40S interest in DE s capital,profits and losses. During 2019, the partnership paid ofa Se00.000 recourse loan, had an ordinary loss of $200,000, received $400,000 of municipal bond interest.paid an EPA fine of $300.000 and recognizeda $20.000 long em capta loss A the end of 2019. what is Pete's tax besis in ABC? OA S420.000 OB $332.000 OC $452.000 OD. S212.000

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

A 270.
Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made capital commibutions of $125,000 (Goodman, $175,000 Pinkman and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: interest of an amount equal to 10% of the that partner's beginning capital balance for the year. 12) annual compensation of $15,000 to Pinkman and (3) the remainder of the Income or loss to be spilt among the partners In the following percentages (8) 20% for Goodman: b) 40% for Pinkmen; and (c) 40% for White. Net Income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew $1,500 for personal use every month during 2020 and 2021 What was the remainder portion of net income allocated to White for 202 о O Choc 562360 $5,000 $90,000 574160
Paco and Rabanne formed a partnership on January 1, 2019 with a profit and loss agreement of 4:2. Paco invested Cash of P500,000 and Equipment with cost of P200,000 while Rabanne invested Cash of P 650,000 and a parcel of land that had an original cost of P 1,580,000. The land had a market value of P 1,800,000 when Rabanne inherited it three years ago. Currently, the land is independently appraised at P 2,500,000. However, Rabanne insisted that the land be recorded at P 5,000,000. Under the full investment approach, how much will be the recorded capital of Rabanne?
Liam & Reagan Company is a partnership that has two partners, Liam and Reagan. At the beginning of the year, Liam's basis in the partnership is $40,000 while Reagan's basis is $70,000. During the year, Liam transfers a building to the partnership. The building has an adjusted basis to Liam of $350,000 and a fair market value of $450,000. There is a recourse mortgage attached to the building of $250,000 that the partnership assumes. Liam's profit-sharing ratio is 40% and his loss sharing ratio is 30%. Reagan's profit-sharing ratio is 60% and her loss sharing ratio is 70%. What is Reagan's basis after this transaction?
On May 1, 2022, Carlo and Jamie formed a partnership by contributing P500,000 each. In addition to Carlo's cash contribution, he invested furniture and fixtures costing P150,000 but with an agreed value of P80,000. Moreover, Jamie invested land with a fair value of P1,200,000 but with professional appraiser's value of P1,110,000 subject to unpaid mortgage of P250,000. Profit or loss is to be shared equally between the partners. How much will be the total capitalization of the partnership after the investment of Carlo and Jamie?
On April 1, 2019 the balance in Jimin’s capital account should be in what amount?Required to answer. Single choice.
On January 1, 2021 David contributed $25,000 cash and building with a basis of $100,000 and a FMV of $165,000 in exchange for 50% interest in partnership XYZ LLC. XYZ had the following activty for 2021: Ordinary Income: $140,000 Operating expenses: $60,000 Interest Income: $10,000 Nondeductible Expenses: 5,000 What is David's outside basis in XYZ LLC on December 31, 2021? 232,500 170,000 167,500 210,000
On July 1, 2019, Olga, Mega and Giga formed the OMG Partnership, by combining their separate business proprietorships. Olga contributed cash of P150,000. Mega contributed property with a carrying amount of P108,000, original cost of P120,000. and a fair value of P240,000. The partnership accepted responsibility for the P105,000 mortgage attached to the property. Giga contributed equipment with a carrying amount of P90,000, original cost of P225,000 and fair market value of P165,000. The partnership agreement specifies that profits and losses are to be shared equally. How much is the investment of Mega? Using the information in no. 2, and assuming capital are based on their profit and loss agreement, how much is the implied bonus? *
Holden admits Jane for partnership interest in his business. The balance sheet accounts of Holden on December 31, 2019 prior to the admission of Jane are as follows: Cash ? Accounts receivable 100,000 Inventory 150,000 Accounts payable 50,000 Holden, Capital ? It is agreed that for purposes of establishing Holden’s interest, the following adjustments should be made: An allowance for doubtful accounts of 5% of accounts receivable is to be established The inventory is to be valued at P160,000 Prepaid expense of P5,000 and accrued expense of P4,000 are to be recognized Jane is to invest P115,000 to give her 1/3 interest in the firm. Total assets of the partnership after the formation is? P399,000 P345,000 P395,000 P339,000