Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end c the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold. Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 494,000 422,800 82,800 2,640 900 300 300 3,000
Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end c the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold. Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 494,000 422,800 82,800 2,640 900 300 300 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and
Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a
tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse
mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of
the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership
records disclosed the following information:
Sales revenue
Cost of goods sold
Operating expenses
Long-term capital gains
§1231 gains
Charitable contributions
Municipal bond interest
Salary paid as a guaranteed payment to Deanne (not
included in expenses)
Required:
$ 494,000
422,800
82,800
2,640
900
300
300
3,000
a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde883f2b-285d-4d55-8493-937a7e117d03%2F9c81e563-dfd8-49f2-be1c-6962e6411593%2Fqqux4bh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and
Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a
tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse
mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of
the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership
records disclosed the following information:
Sales revenue
Cost of goods sold
Operating expenses
Long-term capital gains
§1231 gains
Charitable contributions
Municipal bond interest
Salary paid as a guaranteed payment to Deanne (not
included in expenses)
Required:
$ 494,000
422,800
82,800
2,640
900
300
300
3,000
a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B Required D
Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
Adjusted basis
Keon
Aaron
Deanne
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