Question 23 of 75. At the beginning of 2022, Francisco owned a 50% interest in a partnership. During the year, he co fair market value of $14,000 to the partnership. At the time, his adjusted basis in the equipment was $10,000. Neither Francisco nor the partnership recognized any gain when the equipment was contributed. How does this contribution affect Francisco's outside basis? It decreases by $10,000. It increases by $10,000. It increases by $14,000. It is not impacted by the contribution. Evall aunch as 16

Question 23 of 75. At the beginning of 2022, Francisco owned a 50% interest in a partnership. During the year, he co fair market value of $14,000 to the partnership. At the time, his adjusted basis in the equipment was $10,000. Neither Francisco nor the partnership recognized any gain when the equipment was contributed. How does this contribution affect Francisco's outside basis? It decreases by $10,000. It increases by $10,000. It increases by $14,000. It is not impacted by the contribution. Evall aunch as 16

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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47 A and B formed a partnership on January 1, 2022. A contributed cash of P480,000 and B contributed land with a fair value of P640,000. The partnership assumed the mortgage on the land which amounted to P160,000 on January 1. B originally paid P360,000 for the land. On July 31, 2022, the partnership sold the land for P800,000. How much is the share of B in the gain on sale of the land in the partnership’s financial statements?
12a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership: Basis Fair Market Value Harry: Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally: Equipment used in a business 200,000 150,000 Totals $ 200,000 $ 150,000 What is Sally’s tax basis in her partnership interest?
15. Kuya Kim Atienza, a partner in the KAPA partnership, has a 30% participation in the partnership profits and losses. Kim Atienza’s capital account has a net decrease of P45,000 during the calendar year 2020. During 2020, Kim Atienza withdraws P100,000 (charged against his capital account) and contributed property valued at P25,000 to the partnership. What was the net profit of the KAPA partnership for the year 2020? 16. On March 1. 2021, Rafael M. Lopez formed a partnership with Conrado T. Valix and made the contributions:Cash …………………………………P 350,000Equipment…………………………. 100,000At the end of the year, Lopez received a share of P54,000 on the P120,000 profits. What should be the share of Valix on the partnership profits? Kindly show your solution on each problem. Thank you.
Give me correct answer with explanation.j
Cheryl and Joseph formed a partnership. Cheryl received a 50% interest in partnership capital and profits in exchange for contributing land with a basis of $140,000 and a fair market value of $300,000. Joseph received a 50% interest in partnership capital and profits in exchange for contributing $300,000 of cash. Three years after the contribution date, the land contributed by Cheryl is sold by the partnership to a third party for $380,000. How much taxable gain will Cheryl recognize from the sale? a) $40,000 b) $120,000 c) $160,000 d) $200,000 e) None of the above
H1.
A has been a partner in the ABC Partnership for only four months. During the current year, the partnership sold investment land that it purchased six years ago and recognized a $100,000 gain. A's distributive share of this gain is long-term capital gain. T or F
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In 2020, Fred invested $155,000 in a general partnership. Fred's interest is not considered to be a passive activity. If his share of the partnership losses is $108,500 in 2020 and $75,950 in 2021, how much can he deduct in each year? Fred can deduct $fill in the blank 1 in 2020 and $fill in the blank 2 in 2021.