!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 [The following information applies to the questions displayed below.] Elaine pays $40,000 cash for Martha's one-third interest in the Lakewood Partnership. Just prior to the sale, Martha's basis in Lakewood is $140,000. Lakewood reports the following balance sheet: Assets Cash Land Totals Liabilities and capital Capital Totals -Mary -Martha -Margaret Тах Basis FMV $ 50,000 $ 50,000 370,000 70,000 $420,000 $120,000 $140,000 140,000 140,000 $420,000 Assume the land had been purchased several years ago and the partnership does not have a §754 election in place. a-1. What is the amount of Martha's recognized gain or loss on the sale? Amount of recognized Gain or loss 0
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
How much is the share in profit of AB? How much is the share in profit of CD?
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What is the correct answer in choices A-D?Kindly provide a solution and explanation.
! 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)
Mawa Traders is a business, owned by partners Wanda and Melon. The followingextract of information relates to the partnership at 30 June 2021 R Capital account: Wanda 840 000 Capital account: Maria 500 000 Current account: Wanda (Debit balance at 1 July 2020) 35 000 Current account: Maria (Credit balance at 1 July 2020) 92 000 Drawings: Wanda 87 000 Drawings: Maria 82 000 Profit for the year 640 000 Additional information (still to be taken into account):1. The partners were paid the following monthly salaries:- Wanda R10 000 per month for 12 months- Maria R15 000 per month for 12 monthsSalaries paid to the partners were allocated to the “Salaries and wages” expenseaccount that was used to calculate the profit for the year shown above.2. Wanda withdrew R5 000 from the business bank account to pay for her mother’smedical expenses. This has not been recorded as yet.3. The partnership agreement provides for the following:• The partners are allowed interest on capital…
How much is the share of Lorna share in the net income? * P89,235.00 P90,382.50 P90,735.00 P91,350.00 answer not given
7. The following transactions of Best Pizza, owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019: (see attached images) March 1 Reyes, who owns an ice cream parlor, invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000. Customers’ accounts of P50,000 were also taken over by the partnership at its realizable valuc of 80%. (Recognize an allowance for doubtful accounts for 20% of cost). Ortiz invested cash of P40,000 and pieces of furniture costing P150,000 which the partners agree to be 50% depreciated to arrive at its current fair value. May 1 Flores, an expert in pizza making, invested imported cooking equipment costing P350,000 but which fair value dropped by 40% of its cost. Flores made a down payment of P200,000 when this was purchased and issued a note for the balance half of which is still unpaid. Partners agree that the liability will be assumed, by the partnership. May 31 Partners agree that additional cash investments…
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