Problem 21-41 (LO 21-3) (Algo)[The following information applies to the questions displayed below.]Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago bycontributing cash. Prior to any distributions, the partners have the following bases in their partnership interests:PartnerAdamAlyssaOutsideBasis$ 16,700$ 16,700On December 31 of the current year, the partnership makes a pro rata operating distribution ofPartnerAdamAlyssaDistributionCash $ 23,800Cash $ 10,550Property $ 13,250 (FMV) ($9,950 basis toNote: Leave no answer blank. Enter zero if applicable.partnership)Problem 21-41 Part a (Algo)a. What are the amount and character of Adam's recognized gain or loss?

A partnership is a marketable arrangement in which two or further people or realities( mates)…

Problem 21-41 (LO 21-3) (Algo) [The following information applies to the questions displayed below.] Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Outside Basis Partner Adam Alyssa $ 16,700 $ 16,700 On December 31 of the current year, the partnership makes a pro rata operating distribution of: Partner Adam Distribution

Problem 21-41 (LO 21-3) (Algo) [The following information applies to the questions displayed below.] Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Outside Basis Partner Adam Alyssa $ 16,700 $ 16,700 On December 31 of the current year, the partnership makes a pro rata operating distribution of: Partner Adam Distribution

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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The E.N.D. partnership has the following capital balances as of the end of the current year: $ 280,000 240,000 210,000 190,000 $ 920,000 Pineda Adams Fergie Gomez Total capital Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $262,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $305,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) Capital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez
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