!Required informationProblem 10-55 (LO 10-1, LO 10-6) (Algo)[The following information applies to the questions displayed below.]Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany'sbasis in Westlake is $96,200. Westlake reports the following balance sheet:Таx BasisFMVAssetsCash$ 96, 200$ 96. 200Land192, 400434, 800Totals$ 288, 600$ 531, 000Liabilities and capitalCapital - AmyCapital-Brittany$ 96, 200$ 96, 200$ 96, 200$ 288, 600Сapital-BenTotals(Leave no answer blank. Enter zero if applicable.)Problem 10-55 Part d (Algo)d. How much gain or loss would Michelle recognize if the land were sold for $434,800?Recognized gain

In partnership, Michelle recognized the following profit. Land value tax bases = $192,400 Land Fair…

Required information Problem 10-55 (LO 10-1, LO 10-6) (Algo) [The following information applies to the questions displayed below.] Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,200. Westlake reports the following balance sheet: Таx Basis FMV Assets Cash Land $ 96, 200 $ 96, 200 192. 400 434, 800 Totals $ 288, 600 $ 531, 000 Liabilities and capital Capital - Amy Capital-Brittany Сapital-Ben $ 96, 200 $ 96, 200 $ 96, 200 $ 288, 600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 10-55 Part d (Algo) d. How much gain or loss would Michelle recognize if the land were sold for $434,800? Recognized gain

Required information Problem 10-55 (LO 10-1, LO 10-6) (Algo) [The following information applies to the questions displayed below.] Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,200. Westlake reports the following balance sheet: Таx Basis FMV Assets Cash Land $ 96, 200 $ 96, 200 192. 400 434, 800 Totals $ 288, 600 $ 531, 000 Liabilities and capital Capital - Amy Capital-Brittany Сapital-Ben $ 96, 200 $ 96, 200 $ 96, 200 $ 288, 600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 10-55 Part d (Algo) d. How much gain or loss would Michelle recognize if the land were sold for $434,800? Recognized gain

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 38P

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Required information Problem 10-55 (LO 10-1, LO 10-6) (Algo) [The following information applies to the questions displayed below.] Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,200. Westlake reports the following balance sheet: Tax Basis FMV Assets $ 96, 200 192, 400 Cash $ 96, 200 Land 434, 800 Totals $ 288, 600 $ 531, 000 Liabilities and capital Capital - Amy Capital - Brittany Capital - Ben $ 96, 200 $ 96, 200 $ 96, 200 $ 288, 600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 10-55 Part e (Algo) e1. Suppose Westlake has a $754 election in place. What is Michelle's special basis adjustment? e2. Suppose Westlake has a $754 election in place. How much gain or loss would Michelle recognize on a subsequent sale of the land in this situation? Complete this question by entering your answers in the tabs below. Reg E1 Reg E2 Suppose Westlake has a 5754 election in…
Required information Problem 10-55 (LO 10-1, LO 10-6) (Algo) [The following information applies to the questions displayed below.] Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,200. Westlake reports the following balance sheet: Tax Basis FMV Assets Cash $ 96, 200 $ 96, 200 Land 192, 400 434, 800 Totals $ 288, 600 $ 531, 000 Liabilities and capital Capital - Amy Capital - Brittany Capital - Ben $ 96, 200 $ 96, 200 $ 96, 200 $ 288, 600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 10-55 Part b (Algo) b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis? Amount Basis in partnership interest Inside basis
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! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time? Self-employment income (loss)
! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. Self-employment income (loss)
Fill in the blnnks: Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise invetory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be c. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts to
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Gloria Sanchez and Pierre Mason have a partnership in which they share income equally. They'recapital balances are $ 200,000 and $150,000 respectively. They agree that Mason will sell 1/4 of hispartnership interest to Michelle Rogers. Show the journal entry that must be made if the sales price is (a)$35,000? (b) $40,000?
47. Douglas pays Selena $45,000 for her 30% interest in a partnership with total net assets of $125,000. Following this transaction, Douglas' capital account should have a credit balance of $37,500 b. $45,000 c. $13,500 d. more than $45,000 a. OBJ: LO: 12-03 Moderate DIF: PTS: 1 ANS: A KEY: Bloom's: Application NAT: BUSPROG: Analytic
*E12.11 (LO 4) K. Kolmer, C. Eidman, and C. Ryno share income on a 3:2:5 basis. They have capital bal- ances of $34,000, $26,000, and $21,000, respectively, when Don Jernigan is admitted to the partnership. Instructions Prepare the journal entry to record the admission of Don Jernigan under each of the following assumptions. a. Purchase of 60% of Kolmer's equity for $19,000. b. Purchase of 40% of Eidman's equity for $12,000. 3 c. Purchase of 30% % of Ryno's equity for $9,000. 4. 5 16 18 19
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6. On June 30, 2020, the balance sheet for the partnership of Cabe, Danila, and Ellie, together with their respective profit and loss ratios, were as follows: P585,000 29,250 136,500 Assets, at cost Cabe, loan Cabe, capital (20%). Danila, capital (20%) Ellie, capital (60%) 126,750 1. 292,500 P585,000 Total Cabe has decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P702,000 at June 30, 2020. t. was agreed that the partnership would pay Cabe P198,900 cash for Cabe's partnership interest, including Cabe 's loan which is to be repaid in full. No goodwill is to be recorded. After Cabe's retirement, what is the balance of Danila's capital account? a. P118,462.50 b. P126,750 C. P147,712.50 d. P150,150