The VWXY Partnership owns the following assets on December 30 of the current year: E (Click the icon to view the assets.) O (Click the icon to view more information.) Requirement What are the tax consequences of the distribution to the partnership, Vicki, and the other partners? Start by completing a Sec. 751 nonliquidating distribution analysis. (If a box is not used in the table or the balance is "0", leave the box empty; do not enter a zero. Round to the nearest dollar. Use a minus sign or parentheses in the Difference column if Vicki gave up her interest in a particular property.) - X Vicki's Vicki's Data Table Beginning Interest Before Interest After Hypothetical Partnership Distribution Distribution Proportionate Actual Amount (1/4) (1/5) Distribution Distribution Difference Assets Partnership's Basis FMV Sec. 751 assets: Cash 2$ 60,000 $ 60,000 Receivables 44,000 72,000 120,000 Inventory Total Sec. 751 assets 2$ 132,000 $ 224,000 Total Non-Sec. 751 assets: Print Done Total non-Sec. 751 assets More Info The partnership has no liabilities, and each partner's basis in his or her partnership interest is $30,000. On December 30 of the current year, Vicki receives a current distribution of inventory having a $14,000 FMV, which reduces her partnership interest from one-fourth to one-fifth. Help Me Solve Clear All Check Answe
The VWXY Partnership owns the following assets on December 30 of the current year: E (Click the icon to view the assets.) O (Click the icon to view more information.) Requirement What are the tax consequences of the distribution to the partnership, Vicki, and the other partners? Start by completing a Sec. 751 nonliquidating distribution analysis. (If a box is not used in the table or the balance is "0", leave the box empty; do not enter a zero. Round to the nearest dollar. Use a minus sign or parentheses in the Difference column if Vicki gave up her interest in a particular property.) - X Vicki's Vicki's Data Table Beginning Interest Before Interest After Hypothetical Partnership Distribution Distribution Proportionate Actual Amount (1/4) (1/5) Distribution Distribution Difference Assets Partnership's Basis FMV Sec. 751 assets: Cash 2$ 60,000 $ 60,000 Receivables 44,000 72,000 120,000 Inventory Total Sec. 751 assets 2$ 132,000 $ 224,000 Total Non-Sec. 751 assets: Print Done Total non-Sec. 751 assets More Info The partnership has no liabilities, and each partner's basis in his or her partnership interest is $30,000. On December 30 of the current year, Vicki receives a current distribution of inventory having a $14,000 FMV, which reduces her partnership interest from one-fourth to one-fifth. Help Me Solve Clear All Check Answe
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The VWXY Partnership owns the following assets on December 30 of the current year:
E (Click the icon to view the assets.)
i (Click the icon to view more information.)
Requirement
What are the tax consequences of the distribution to the partnership, Vicki, and the other partners?
.....
Start by completing a Sec. 751 nonliquidating distribution analysis. (If a box is not used in the table or the balance is "0", leave the box empty; do not enter a zero. Round to the nearest dollar. Use a minus sign or parentheses in the Difference
column if Vicki gave up her interest in a particular property.)
Vicki's
Vicki's
Data Table
Beginning
Interest Before
Interest After
Нурpothetical
Partnership
Distribution
Distribution
Proportionate
Actual
Amount
(1/4)
(1/5)
Distribution
Distribution
Difference
Assets
Partnership's Basis
FMV
Sec. 751 assets:
Cash
60,000 $
60,000
Receivables
44,000
72,000
120,000
Inventory
Total Sec. 751 assets
$
132,000 $
224,000
Total
Non-Sec. 751 assets:
Print
Done
Total non-Sec. 751 assets
More Info
The partnership has no liabilities, and each partner's basis in his or her partnership
interest is $30,000. On December 30 of the current year, Vicki receives a current
distribution of inventory having a $14,000 FMV, which reduces her partnership
interest from one-fourth to one-fifth.
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