Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,750 basis and a $17,050 fair market value. On January 2 of this year, Kimberly has a $15,900 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a Š12,975 basis and an $19,275 fair market value. Problem 21-44 Part b (Algo) b. What is Kimberly's remaining basis in KST after the distribution? Basis Problem 21-44 Part c (Algo) c. What is KST's basis in the land Kimberly contributed after Kimberly receives this distribution?

Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,750 basis and a $17,050 fair market value. On January 2 of this year, Kimberly has a $15,900 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a Š12,975 basis and an $19,275 fair market value. Problem 21-44 Part b (Algo) b. What is Kimberly's remaining basis in KST after the distribution? Basis Problem 21-44 Part c (Algo) c. What is KST's basis in the land Kimberly contributed after Kimberly receives this distribution?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jenna began the year with a tax basis of $21,000 in her partnership interest. Her share of partnership liabilities consists of $9,000 of recourse liabilities and $11,000 of nonrecourse liabilities at the beginning of the year and $9,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $31,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $8,000 of passive income from other sources. How much of Jenna’s loss is limited by her tax basis? How much of Jenna’s loss is limited by her at-risk amount? How much of Jenna’s loss is limited by the passive activity loss rules? Please subparts answer fast i give positive rating and without plagiarism no plagiarism please
Cari Hawkins is a 50% partner in the calendar year Hawkins-Henry Partnership. On January 1, 2020, her basis in her partnership interest is $160,000. The partnership has no taxable income or loss for the current year. In a nonliquidating distribution on December 15, the partnership distributes $120,000 cash to Cari and inventory proportionately to all partners. Cari’s share of the inventory has a basis of $50,000 (fair market value of $60,000). In January 2021, Cari asks your advice regarding treatment of 2020 operations and distributions. a. How much gain or loss does the partnership recognize as a result of 2020activities?
Jenna began the year with a tax basis of $22,000 in her partnership interest. Her share of partnership liabilities consists of $3,000 of recourse liabilities and $12,000 of nonrecourse liabilities at the beginning of the year and $3,000 of recourse liabilities and $14,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $36,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $5,000 of passive income from other sources. b. How much of Jenna’s loss is limited by her at-risk amount?
On January 1, 2021, Bob purchased a 50 percent interest in ABC Partnership (ABC) from Tim by paying Tim $150,000 in cash. During 2021, ABC had ordinary income totaling $180,000 and paid a penalty to the state of Virginia in the amount of $1,000. ABC, which does not have any liabilities, made a distribution to its partners on December 31, 2021 in the total amount of $50,000. The ABC partnership agreement requires all income, gains, and losses to be allocated between Bob and his partner based on ownership interest or 50/50. Required: 1. Calculate Bob's tax basis in ABC partnership interest on December 31, 2021. 2. If Bob sold his entire interest to Jack on January 1, 2022 for $200,000, calculate Bob's gain or loss on the sale assuming that ABC at the time of the sale did not have any "Hot Assets".
Shirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank you
Milton has a basis in his partnership of $300,000, including his $80,000 share of partnership liabilities. At the end of the current year the partnership pays off the liabilities and makes a proportionate current distribution to its partners. Milton receives a parcel of land (partnership basis of $120,000 and FMV of $135,000) and inventory (partnership basis of $160,000 and FMV of $180,000). Following the distribution what is Milton's basis in the inventory? I'm not sure if it's 160,000 or not
AJ is a 30 percent partner in the Trane Partnership, a calendar - year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $77, 500, which includes his share of the $53, 600 of partnership liabilities. Trane generates $43,800 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: Tax Basis FMV Inventory $ 59,500 $ 70,400 Land 31,800 25,900 Totals $ 91,300 $ 96, 300 Note: Leave no answer blank. Enter zero if applicable. a. What are the tax consequences ( gain or loss, basis adjustments) of the distribution to Trane? b. What are the amount and character of any recognized gain or loss to AJ? c. What is AJ's basis in the distributed assets? d. If AJ sells the inventory four years after the distribution for $75, 400, what are the amount and character of his recognized gain or loss?
Cheryl and Joseph formed a partnership. Cheryl received a 50% interest in partnership capital and profits in exchange for contributing land with a basis of $140,000 and a fair market value of $300,000. Joseph received a 50% interest in partnership capital and profits in exchange for contributing $300,000 of cash. Three years after the contribution date, the land contributed by Cheryl is sold by the partnership to a third party for $380,000. How much taxable gain will Cheryl recognize from the sale? a) $40,000 b) $120,000 c) $160,000 d) $200,000 e) None of the above
Cari Hawkins is a 50% partner in the calendar year Hawkins-Henry Partnership. On January 1, 2015, her basis in her partnership interest is $160,000. The partnership has no taxable income or loss for the current year. In a nonliquidating distribution on December 15, the partnership distributes $120,000 cash to Cari and inventory proportionately to all partners. Cari’s share of the inventory has a basis of $50,000 (fair market value of $60,000). In January 2016, Cari asks your advice regarding treatment of 2015 operations and distributions. a. How much gain or loss does the partnership recognize as a result of 2015 activities? b. How much gain or loss must Cari recognize in 2015? c. What is Cari’s basis in inventory received? d. What is Cari’s basis in her partnership interest at the end of 2015? e. Are there other considerations Cari and/or the partnership should address?
acc
Henry and Ana each own 50% interest in a business entity. Henry contributed $200,000 for her ownership interest and Ana contributed Land worth $200,000 (adjusted basis of $150,000) for her ownership interest. Several months after the formation of the entity, the land contributed by Ana is sold by the business entity for $220,000. if the business entity is a partnership, Ana share of the recognized gain from sale of the land by the partnership is $35,000 true or false Kindly explain it properly
Marcus and Madison are equal members of an LLC. On January 1 of the current year, to acquire a one-third interest in the entity, Nora contributed a parcel of land she had held for investment. (At this time, the entity will be renamed MMN LLC.) Nora had purchased the land for $120,000; its fair market value was $90,000 at the contribution date. A few years later, the LLC sells Nora’s land for $84,000. At the beginning of that year, Nora’s capital account (determined using the tax basis) was $200,000 and Marcus and Madison’s capital accounts (also calculated on the tax basis) were $170,000. a. What is the LLC’s recognized gain or loss? How is it allocated among the LLC members? b. Use Microsoft Excel to prepare schedules that compute the partners’ tax basis capital accounts immediately after the sale. Use variables to input the amount allocated to each LLC member and the total not specially allocated.