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Problem 21-27 (LO. 3, 8) Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000. John had used the equipment in his sole proprietorship. If an amount is zero, enter "0". a. How much gain or loss will Liz, John, and the partnership realize? Liz realizes a gain ✔ of $ John realizes a gain ✓ of $ The partnership realizes a gain ✓ Feedback 15,000 ✔ on contribution of the land. 150,000✔ on contribution of the equipment. equal to the value of the property it receives ✔

Problem 21-27 (LO. 3, 8) Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000. John had used the equipment in his sole proprietorship. If an amount is zero, enter "0". a. How much gain or loss will Liz, John, and the partnership realize? Liz realizes a gain ✔ of $ John realizes a gain ✓ of $ The partnership realizes a gain ✓ Feedback 15,000 ✔ on contribution of the land. 150,000✔ on contribution of the equipment. equal to the value of the property it receives ✔

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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N2.

part d please 

 

C. What tax bases will Liz and John take in their partnership interests? Liz's basis in the partnership is $ Feedback 155,000 ✓, and John's basis is $ d. What § 704(b) book basis will Liz and John take in their partnership interests? 95,000 X 20,000 in his partnership interest.
Transcribed Image Text:C. What tax bases will Liz and John take in their partnership interests? Liz's basis in the partnership is $ Feedback 155,000 ✓, and John's basis is $ d. What § 704(b) book basis will Liz and John take in their partnership interests? 95,000 X 20,000 in his partnership interest.
Problem 21-27 (LO. 3, 8) Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000. John had used the equipment in his sole proprietorship. If an amount is zero, enter "0". a. How much gain or loss will Liz, John, and the partnership realize? Liz realizes a gain ✔ of $ John realizes a gain ✔ of $ The partnership realizes a gain ✓ equal to the value of the property it receives ✔ Feedback ►Check My Work 15,000✔ on contribution of the land. 150,000✔ on contribution of the equipment. b. How much gain or loss will Liz, John, and the partnership recognize? Liz recognizes $ John recognizes The partnership recognizes $ 0 0 ✓ 0
Transcribed Image Text:Problem 21-27 (LO. 3, 8) Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000. John had used the equipment in his sole proprietorship. If an amount is zero, enter "0". a. How much gain or loss will Liz, John, and the partnership realize? Liz realizes a gain ✔ of $ John realizes a gain ✔ of $ The partnership realizes a gain ✓ equal to the value of the property it receives ✔ Feedback ►Check My Work 15,000✔ on contribution of the land. 150,000✔ on contribution of the equipment. b. How much gain or loss will Liz, John, and the partnership recognize? Liz recognizes $ John recognizes The partnership recognizes $ 0 0 ✓ 0
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