Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in Suz-Anna GP (a general partnership in which both partners are active owners). Anna contributed land and a building valued at $640,000 (basis of $380,000) in exchange for the remaining 60% interest. Anna's property was encumbered by qualified nonrecourse financing of $100,000, which was assumed by the partnership. The partnership reports the following income and expenses for the current tax year. Sales $560,000 Utilities, salaries, depreciation, other operating expenses 360,000 Short-term capital gain 10,000 Tax-exempt interest income 4,000 Charitable contributions 8,000 Distribution to Suzy 10,000 Distribution to Anna 20,000 At the end of the year, Suz-Anna held recourse debt of $100,000 for partnership accounts payable and qualified nonrecourse financing of $200,000. Question Content Area a.  Suzy's beginning basis in her partnership interest is $fill in the blank 52038402dfd9022_1, and Anna's basis is $fill in the blank 52038402dfd9022_2.   Feedback Area   Feedback   Question Content Area b.  Enter the amounts and line number for the following income deductions and taxes that will appear on Suzy's Schedule K-1. Item Amount Line on Sch. K-1 Ordinary income $fill in the blank e10456f6cf8fff9_1 fill in the blank e10456f6cf8fff9_2 Short-term capital gain $fill in the blank e10456f6cf8fff9_3 fill in the blank e10456f6cf8fff9_4 Tax-exempt interest income $fill in the blank e10456f6cf8fff9_5 fill in the blank e10456f6cf8fff9_6 Charitable contributions $fill in the blank e10456f6cf8fff9_7 13       Distribution received by Suzy $fill in the blank e10456f6cf8fff9_8 fill in the blank e10456f6cf8fff9_9   Feedback Area   Feedback   Partially correct Question Content Area c.  All partnership debts are shared proportionately. Suzy's year-end basis in her p

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
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Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in Suz-Anna GP (a general partnership in which both partners are active owners). Anna contributed land and a building valued at $640,000 (basis of $380,000) in exchange for the remaining 60% interest. Anna's property was encumbered by qualified nonrecourse financing of $100,000, which was assumed by the partnership. The partnership reports the following income and expenses for the current tax year.

Sales $560,000
Utilities, salaries, depreciation, other operating expenses 360,000
Short-term capital gain 10,000
Tax-exempt interest income 4,000
Charitable contributions 8,000
Distribution to Suzy 10,000
Distribution to Anna 20,000

At the end of the year, Suz-Anna held recourse debt of $100,000 for partnership accounts payable and qualified nonrecourse financing of $200,000.

Question Content Area

a.  Suzy's beginning basis in her partnership interest is $fill in the blank 52038402dfd9022_1, and Anna's basis is $fill in the blank 52038402dfd9022_2.

 

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b.  Enter the amounts and line number for the following income deductions and taxes that will appear on Suzy's Schedule K-1.


Item

Amount
Line on
Sch. K-1
Ordinary income $fill in the blank e10456f6cf8fff9_1 fill in the blank e10456f6cf8fff9_2
Short-term capital gain $fill in the blank e10456f6cf8fff9_3 fill in the blank e10456f6cf8fff9_4
Tax-exempt interest income $fill in the blank e10456f6cf8fff9_5 fill in the blank e10456f6cf8fff9_6
Charitable contributions $fill in the blank e10456f6cf8fff9_7 13      
Distribution received by Suzy $fill in the blank e10456f6cf8fff9_8 fill in the blank e10456f6cf8fff9_9
 

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Partially correct

Question Content Area

c.  All partnership debts are shared proportionately.

Suzy's year-end basis in her partnership interest is $fill in the blank 0078a5fc2f8ef99_1, and Suzy's amount at risk is $

 

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