Ron Burgundy and Jack Lime form a partnership called Anchormen United. Ron invests $30,000 worth of cash, and a building that cost him $90,000. The fair value of the building is $95,000. Jack Lime invests $15,000 in cash, accounts receivable $13,000 less allowance for doubtful accounts of $2,000, and equipment $30,000 less accumulated depreciation of $4,000. The fair value of the equipment is $23,000. Journalize Ron Burgundy’s investment in the partnership. Journalize Jack Lime’s investment in the partnership.

Q: Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $244,600 and fair market…

A: Equipment basis = $ 244600 Equipment Fair value value = $ 366900 Cash Invested by Simon = $ 293520

Q: Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They…

A: Given,   Ending Cash = $1,500   Beginning Cash: Bray = $225 Lincoln = $300

Q: Mitt Romney contributed land, equipment, and $60,000 in cash to form a partnership with his buddy…

A: Partnership is one of the form of business organisation. Under this, two or more than two persons…

Q: Abner and Bimbo have just formed a partnership. Abner contributed cash of $2,346,000 and office…

A: Abner should make additional investment (withdrawal) of cash in the amount of b.$(540000) Refer step…

Q: Jerry and Chan have formed a partnership. Jerry contributed cash of 630,000 and computer equipment…

A: A partnership is an agreement between two or more persons in which they invest their capital, run a…

Q: $0. Kevin has a basis in his partnership interest of $110,000 and Marshall's basis is $0. A.) True…

A: The statement is True.

Q: Cindy, Casey, and Kara each invested $27,500 in a real estate venture. The partnership borrowed…

A: Beginning at-risk amount:- partnership borrowed *Ratio  + each invested in a real estate venture

Q: Josiah Barlow, Patty DuMont, and Owen Maholic are contemplating the formation of a partnership.…

A: A partnership agreement is necessary in order to have an understanding between the partners in terms…

Q: Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book…

A: The objective of this question is to determine the amount that will be recorded to Kelsey's capital…

Q: Ariel and Mia agree to combine their business assets to form the A&M corporation. Ariel's business…

A: Ariel and Mia decide to form Corporation AM. Ariel decides to contribute $135,000 worth of assets…

Q: Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan…

A: Following is the tax basis balance sheet for all partners:

Q: Able and Baker have agreed to form a partnership. Both of them already had proprietorships, and…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Q: Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse…

A: An agreement under which two or more partners share profit or losses in an agreed ratio refers to…

Q: Conan and Andy decide to form a new corporation, LN Corp. Conan contributes property with a basis of…

A: Basis refers to the original value of an asset for tax purposes. It is the cost or amount initially…

Q: is a PNB note of P1, 200,000 which will be assumed by the partnership. Give two journal entries to…

A: ParticularsDebit (P)Credit (P)Land3,500,000Building2,500,000     To PNB Note payable1,200,000     To…

Q: Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary…

A: Formula: David basis in the corporate stock received = Cash contribution + land contribution.

Q: When Kevin and Marshall formed the equal KM LLC, the fair market values of their interests were…

A: The basis of the property contributed by partners to the partnership firm is determined for the…

Q: 6.Matthew and Venice decide to form their new retail business as an LLC. Each will receive an equal…

A: LLC full form is Limited liability company. It is another form of partnership where the liability of…

Q: Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book…

A: Partnership characteristics includes: Sharing of profits and losses Mutual agency Unlimited…

Q: Todd and Elaine purchased for $300,000 a building that was used for manufacturing pianos. Then as…

A: Todd and Elaine purchased a building for $300000. after the formation of a new corporation, the same…

Q: Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Bob and Bill form Star Corporation with the follow investments. Bob transfers machinery (basis of…

A: Corporations are formed by contribution of the owners and contribution may be in the form of land,…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.