Problem 14-58 (LO 14-5) Roberto has a basis of $6,000 in a partnership at the beginning of the year. He receives $7,000 in cash distributions, his distributive share of income is $3,500, and he receives a land distribution with a basis of $6,000 (FMV $12,000). Required: a. Is Roberto required to recognize any gain? If so, how much is the gain? b. What is Roberto's basis in the land? c. What is Roberto's ending basis in his partnership interest? Note: Leave no cells blank. Enter "0" wherever required. a. b. C. Answer is complete but not entirely correct. Amount $6,000 X 6,000 X 8,500 Yes Basis in land Ending basis in partnership 69 69 $ $
Problem 14-58 (LO 14-5) Roberto has a basis of $6,000 in a partnership at the beginning of the year. He receives $7,000 in cash distributions, his distributive share of income is $3,500, and he receives a land distribution with a basis of $6,000 (FMV $12,000). Required: a. Is Roberto required to recognize any gain? If so, how much is the gain? b. What is Roberto's basis in the land? c. What is Roberto's ending basis in his partnership interest? Note: Leave no cells blank. Enter "0" wherever required. a. b. C. Answer is complete but not entirely correct. Amount $6,000 X 6,000 X 8,500 Yes Basis in land Ending basis in partnership 69 69 $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 14-58 (LO 14-5)
Roberto has a basis of $6,000 in a partnership at the beginning of the year. He receives $7,000 in cash distributions, his
distributive share of income is $3,500, and he receives a land distribution with a basis of $6,000 (FMV $12,000).
Required:
a. Is Roberto required to recognize any gain? If so, how much is the gain?
b. What is Roberto's basis in the land?
c. What is Roberto's ending basis in his partnership interest?
Note: Leave no cells blank. Enter "0" wherever required.
a.
b.
C.
Answer is complete but not entirely correct.
Amount
Yes
Basis in land
Ending basis in partnership
$
$
$
6,000 X
6,000 X
8,500 ×
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