Victor is a one-third partner in the VRX Partnership, with an outside basis of $228,200 on January 1. Victor sells his partnership interest to Raj on January 1 for $275,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) BasisFMVCash$ 35,200$ 35,200Accounts receivable015,600Inventory113,000133,400Equipment272,250344,550Stock investment78,000108,900Totals $ 498,450$ 637,650 The equipment was purchased for $363,000 and the partnership has taken $90,750 of depreciation. The stock was purchased seven years ago. What is the amount and character of Victor's gain or loss on the sale of his partnership interest? Essay Toolbar navigation opens in a dialog

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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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Victor is a one-third partner in the VRX Partnership, with an outside basis of $228,200 on January 1. Victor sells his partnership interest to Raj on January 1 for $275,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

	Basis	FMV
Cash	$ 35,200	$ 35,200
Accounts receivable	0	15,600
Inventory	113,000	133,400
Equipment	272,250	344,550
Stock investment	78,000	108,900
Totals	$ 498,450	$ 637,650

The equipment was purchased for $363,000 and the partnership has taken $90,750 of depreciation. The stock was purchased seven years ago. What is the amount and character of Victor's gain or loss on the sale of his partnership interest?

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