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The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2019, Jessica contributed land valued at $556,000 to the partnership in exchange for a 50% interest. She had purchased the land in 2011 for $389,200 and held it for investment purposes (capital asset). The partnership holds the land as inventory. On the same date, Matt contributed land valued at $556,000 that he had purchased in 2009 for $667,200. He became a 50% owner. Matt is a real estate developer, but he held this land personally for investment purposes. The partnership holds this land as inventory. In 2020, the partnership sells the land contributed by Jessica for $ 583,800. In 2021, the partnership sells the real estate contributed by Matt for $528,200. How would your answer in (c) change if the property was sold in 2026? D) The amount of the recognized on the sale of the land contributed by Matt is Sfill in the blank e8405609404d043_2, and the type is.

The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2019, Jessica contributed land valued at $556,000 to the partnership in exchange for a 50% interest. She had purchased the land in 2011 for $389,200 and held it for investment purposes (capital asset). The partnership holds the land as inventory. On the same date, Matt contributed land valued at $556,000 that he had purchased in 2009 for $667,200. He became a 50% owner. Matt is a real estate developer, but he held this land personally for investment purposes. The partnership holds this land as inventory. In 2020, the partnership sells the land contributed by Jessica for $ 583,800. In 2021, the partnership sells the real estate contributed by Matt for $528,200. How would your answer in (c) change if the property was sold in 2026? D) The amount of the recognized on the sale of the land contributed by Matt is Sfill in the blank e8405609404d043_2, and the type is.

FINANCIAL ACCOUNTING
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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The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2019, Jessica contributed land valued at $556,000 to the partnership in exchange for a 50% interest. She had purchased the land in 2011 for $389,200 and held it for investment purposes (capital asset). The partnership holds the land as inventory. On the same date, Matt contributed land valued at $556,000 that he had purchased in 2009 for $667,200. He became a 50% owner. Matt is a real estate developer, but he held this land personally for investment purposes. The partnership holds this land as inventory. In 2020, the partnership sells the land contributed by Jessica for $ 583,800. In 2021, the partnership sells the real estate contributed by Matt for $528,200. How would your answer in (c) change if the property was sold in 2026? D) The amount of the recognized on the sale of the land contributed by Matt is $fill in the blank e8405609404d043_2, and the type is.
Transcribed Image Text:The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2019, Jessica contributed land valued at $556,000 to the partnership in exchange for a 50% interest. She had purchased the land in 2011 for $389,200 and held it for investment purposes (capital asset). The partnership holds the land as inventory. On the same date, Matt contributed land valued at $556,000 that he had purchased in 2009 for $667,200. He became a 50% owner. Matt is a real estate developer, but he held this land personally for investment purposes. The partnership holds this land as inventory. In 2020, the partnership sells the land contributed by Jessica for $ 583,800. In 2021, the partnership sells the real estate contributed by Matt for $528,200. How would your answer in (c) change if the property was sold in 2026? D) The amount of the recognized on the sale of the land contributed by Matt is $fill in the blank e8405609404d043_2, and the type is.
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