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 precontributic 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 loss on the distribution? Ralph V 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

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 precontributic 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 loss on the distribution? Ralph V 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

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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Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used the available funds to acquire equipment costing $200,000 and to fund current operating expenses. The partnership agreement provides that depreciation will be allocated 80% to Bryan and 20% to Cody. All other items of income and loss will be allocated equally between the partners.Upon liquidation of the partnership, property will be distributed to the partners in accordance with their § 704(b) book capital account balances. Any partner with a negative capital account must contribute cash in the amount of the negative balance to restore the capital account to $0. In its first year, the partnership reported an ordinary loss (before depreciation) of $80,000 and depreciation expense of $36,000. In its second year, the partnership reported $40,000 of income from operations (before depreciation), and it reported depreciation expense of $57,600. a. Calculate the…
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