[The following information applies to the questions displayed below.] Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash- method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,250. During January and February, the partnership generates $34,290 of ordinary income and $5,514 of tax- exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $52,150. The partnership has the following assets and no liabilities at the sale date: Tax Basis $ 36,500 36,500 $ 73,000 FMV S 36,500 73,000 S 19,500 Cash Land held for investment Totals lem 21-32 Part c (Algo)
[The following information applies to the questions displayed below.] Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash- method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,250. During January and February, the partnership generates $34,290 of ordinary income and $5,514 of tax- exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $52,150. The partnership has the following assets and no liabilities at the sale date: Tax Basis $ 36,500 36,500 $ 73,000 FMV S 36,500 73,000 S 19,500 Cash Land held for investment Totals lem 21-32 Part c (Algo)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![[The following information applies to the questions displayed below.]
Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash-
method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,250.
During January and February, the partnership generates $34,290 of ordinary income and $5,514 of tax-
exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of
$52,150. The partnership has the following assets and no liabilities at the sale date:
Tax Basis
FMV
$ 36,500
$ 36,500
73,000
Cash
Land held for investment
36,500
Totals
$ 73,000
$ 109,500
Problem 21-32 Part c (Algo)
:. What is Juan's initial basis in the partnership interest?
Basis
2$
43,518](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bbb1023-8679-4974-8088-d39c72847843%2Fa6cf983f-07cb-4e4e-be58-d07f14def2c6%2Ffy25myu_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash-
method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,250.
During January and February, the partnership generates $34,290 of ordinary income and $5,514 of tax-
exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of
$52,150. The partnership has the following assets and no liabilities at the sale date:
Tax Basis
FMV
$ 36,500
$ 36,500
73,000
Cash
Land held for investment
36,500
Totals
$ 73,000
$ 109,500
Problem 21-32 Part c (Algo)
:. What is Juan's initial basis in the partnership interest?
Basis
2$
43,518
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