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Required information Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Totals Tax Basis FMV $18,810 $18,810 0 25,080 13,350 41,400 $59,550 $98,640 8,040 32,700 Melissa receives one-third of each of the partnership assets. She has a basis in her partnership interest of $26,755. (Leave no answer blank. Enter zero if applicable.) c1. What is the amount and character of Melissa's recognized gain or loss if her outside basis is $11,810 rather than $26,755? c2. What is Melissa's basis in the distributed assets if her basis in Opto Partnership is $11,810 rather than $26,755?

Required information Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Totals Tax Basis FMV $18,810 $18,810 0 25,080 13,350 41,400 $59,550 $98,640 8,040 32,700 Melissa receives one-third of each of the partnership assets. She has a basis in her partnership interest of $26,755. (Leave no answer blank. Enter zero if applicable.) c1. What is the amount and character of Melissa's recognized gain or loss if her outside basis is $11,810 rather than $26,755? c2. What is Melissa's basis in the distributed assets if her basis in Opto Partnership is $11,810 rather than $26,755?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Totals Tax Basis $18,810 Req C1 FMV $18,810 0 8,040 32,700 25,080 13,350 41,400 $59,550 $98,640 Melissa receives one-third each of the partnership assets. She has a basis in her partnership interest of $26,755. (Leave no answer blank. Enter zero if applicable.) Req C2 c1. What is the amount and character of Melissa's recognized gain or loss if her outside basis is $11,810 rather than $26,755? c2. What is Melissa's basis in the distributed assets if her basis in Opto Partnership is $11,810 rather than $26,755? Complete this question by entering your answers in the tabs below. What is the amount and character of Melissa's recognized gain or loss if her outside basis is $11,810 rather than $26,755? Neither gain nor loss recognized $5,177 ordinary income O$18,977 ordinary income O$5,177 capital gain O$18,977 capital gain
Transcribed Image Text:Required information Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Cash Accounts receivable Stock investment Land Totals Tax Basis $18,810 Req C1 FMV $18,810 0 8,040 32,700 25,080 13,350 41,400 $59,550 $98,640 Melissa receives one-third each of the partnership assets. She has a basis in her partnership interest of $26,755. (Leave no answer blank. Enter zero if applicable.) Req C2 c1. What is the amount and character of Melissa's recognized gain or loss if her outside basis is $11,810 rather than $26,755? c2. What is Melissa's basis in the distributed assets if her basis in Opto Partnership is $11,810 rather than $26,755? Complete this question by entering your answers in the tabs below. What is the amount and character of Melissa's recognized gain or loss if her outside basis is $11,810 rather than $26,755? Neither gain nor loss recognized $5,177 ordinary income O$18,977 ordinary income O$5,177 capital gain O$18,977 capital gain
Req C1 Req C2 What is Melissa's basis in the distributed assets if her basis in Opto Partnership is $11,810 rather than $26,755? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Cash Accounts receivable Stock investment Land S S $ S 69 Basis 6,270 0 2,680 10,900 < Req C1 Req C2 >
Transcribed Image Text:Req C1 Req C2 What is Melissa's basis in the distributed assets if her basis in Opto Partnership is $11,810 rather than $26,755? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Cash Accounts receivable Stock investment Land S S $ S 69 Basis 6,270 0 2,680 10,900 < Req C1 Req C2 >
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