increased in value and was worth $220,000 on the date of contribution. A few years later, Treadwell LLCsells the land for $320,000. At the beginning of that year, Helen's capital account was $200,000.a) On January 1st of this year, Helen acquired a 1/4 interest in Treadwell LLC (a partnership). Helenin outed some land she held for investment She purchased the land for $200,000, but the land1. Compute the gain or loss to Treadwell LLC when it sold the land2. Compute the capital account for Helen immediately after the sale,b) Helen's basis in Monarch is 30,000 at the beginning of the tax year, and she owns 20% of thebusiness. During the year, Monarch had the following items:10,000Ordinary Income:Tax-Free Interest Income:20,00015,00020,00020,000Penalties and fines:Loan 1 (from Helen to Monarch):Loan 2 (from Greedy Bank to Monarch):Compute the following:If Monarch is a partnership, Helen's partnership interest basis at the end of theyearIf Monarch is an S-Corp, Helen's stock basis at the end of theyearIf Monarch is an S-Corp, Helen's loan basis at the end of theyear

Hi since you have asked multiple questions, we are solving the 1st independent question only. To get the solution for the remaining question kindly resubmit the other unanswered questions(1) Helen Interest in Treadwell LLC = 1/4 (2) Helen Purchased Land = $ 200,000 (3) Revalued Value at the time of contribution to LLC = $ 220,000 (4) Sale value by Treadwell LLC = $ 320,000 (5) Capital account balance at the beginning of the year = $ 200,000Helen's share of Profits and Losses = 1/4th

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sells the land for $320,000. At the beginning of that year, Helen's capital account was $200,000. increased in value and was worth $220,000 on the date of contribution. A few years later, Treadwell LLC contributed some land she held for investment. She purchased the land for $200,000, but the land a) On January 1st of this year, Helen acquired a 1/4 interest in Treadwell LLC (a partnership). Helen 1. Compute the gain or loss to Treadwell LLC when it sold the land 2. Compute the capital account for Helen immediately after the sale

sells the land for $320,000. At the beginning of that year, Helen's capital account was $200,000. increased in value and was worth $220,000 on the date of contribution. A few years later, Treadwell LLC contributed some land she held for investment. She purchased the land for $200,000, but the land a) On January 1st of this year, Helen acquired a 1/4 interest in Treadwell LLC (a partnership). Helen 1. Compute the gain or loss to Treadwell LLC when it sold the land 2. Compute the capital account for Helen immediately after the sale

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ted Coverdale and Jim Kulak set up a new limited liability company on May 16, 2020. Ted contributes a warehouse and land worth a combined $1,098,000. Market value of the warehouse is $264,000. Jim contributes $893,000 in cash. Write the journal entry to record the contributions to the LLC.
Glenda sold her units in Gas Lines, LP, a PTP. She purchased the shares on November 15, 2017, for $5,000. She sold all her units on November 15, 2019, for $10,000. In 2017, the partnership reported distribution of $400. In 2018, the partnership reported a business income of $907, interest of $50, and a distribution of $1,900. In 2019, the partnership reported a business loss of $300, interest of $45, and a distribution of $3,100. What is the amount of Glenda's total gain or loss? $400 loss. $4,298 gain. $5,201 gain. $9,698 gain.
Ma1. Morgan and Kristen formed an equal partnership on August 1 of the current year. Morgan contributed $60,000 cash and land with a basis of $18,000 and a fair market value of $40,000. Kristen contributed equipment with a basis of $42,000 and a value of $100,000. Calculate Morgan and Kristen’s basis in the property.
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On December 7 of the tax year, S (a single taxpayer) decided to sell all of the stock that she owns and reinvest the proceeds in state of Colorado bonds. Information about the stock is provided below: Corporation FMV Basis Holding Period ABC $180,000 $130,000 11 months LMN 200,000 255,000 5 years XYZ 382,000 300,000 2 years She is willing to sell some of the stock this year and the remaining stock next year if it is more advantageous to spread the sales over two years. Assume the fair market value of the stock will not change and her regular tax rate is 32% (and will be 32% next year). (Disregard present value calculations and the medicare tax on net investment income.) Determine the change in her income tax for the two years combined if she sells ABC and LMN this year and XYZ in March of next year.
Three years ago, Ralph joined the RV Partnership by contributing land with a $5,000 basis and a $24,000 FMV. On January 15 of the current year, Ralph has a basis in his partnership interest of $15,000, and none of his precontribution gain has been recognized. On January 15, Ralph receives a current distribution of a property other than the contributed land with a $10,000 basis and a $30,000 FMV. Read the requirements. ..... Requirement a. Does Ralph recognize any gain or loss on the distribution? Ralph on the distribution. Requirements a. Does Ralph recognize any gain or loss on the distribution? b. What is Ralph's basis in his partnership interest after the distribution? c. What is the partnership's basis in the land Ralph contributed after Ralph receives this distribution? Print Done
On May 1, 2022, Carlo has been in a trading business for five years as a sole proprietor. He needed additional capital to fund business expansion so he decided to invite Jamie by investing cash for a one-third interest in the new partnership, CABLES Trading. CABLES Trading would assume the liabilities of Carlo's business. Jamie accepted the invitation and both agreed to revalue assets of Carlo's business as itemized: Accounts Receivable $50,000; Merchandise Inventory $28,000; Office Equipment $22,000; and Land $279,000. Account balances in the books of Carlo were as follows: Account Titles Debit Credit Cash P135,000 Accounts Receivable 60,000 Allowance for Doubtful Accounts P 4,000 Merchandise Inventory 25,000 Office Equipment 33,000 Accumulated Depreciation 15,000 Land 260,000 Accounts Payable 194,000 Carlo, Capital 300,000 How much is the capital of CABLES Trading upon formation?
Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis. On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows: Katie Cummings $90,000 Julie Stickel 60,000 Roy Hewson 50,000 Patricia Weber 40,000 Required: 1. Prepare the general journal entry required to enter the check issued to Mr. Weber in payment of his deceased wife’s interest in the partnership. According to the partnership agreement, the difference between the amount paid to Mr. Weber and the book value of Patricia Weber’s capital account is allocated to the remaining…
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Ted Coverdale and Jim Kulak set up a new limited liability company on May 16, 2020. Ted contributes a warehouse and land worth a combined $1,098,000. Market value of the warehouse is $264,000. Jim contributes $893,000 in cash. Write the journal entry to record the contributions to the LLC.
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $22,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $142,000, Cost of Goods Sold - $82,000, Depreciation Expense - $41,000, Long-Term Capital Gains - $7,000, Qualified Dividends - $5,200, and Municipal Bond Interest - $3,200. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? Multiple Choice ($3,000). $10,600. $13,800. $19,000. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
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