What is Nancy's basis in the equipment?
Q: Abner and Bimbo have just formed a partnership. Abner contributed cash of $2,346,000 and office…
A: Abner should make additional investment (withdrawal) of cash in the amount of b.$(540000) Refer step…
Q: ufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year,…
A: Introduction:- A partnership is a type of business where two or more peoples form together for…
Q: Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $91,000…
A: The current FICA tax rate is 7.65% (i.e. social security tax rate of 6.2% and medicare tax rate of…
Q: Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y…
A: b) Cosmo’s tax basis in his partnership interest:- = 102000 * 30 % = $ 30600 Conclusion:- $ 30600
Q: Goldfish partnership has 3 partners, Susan, Tina, and Vivian. Each partner has a basis in her…
A: A business partnership is a sort of commercial entity in which two or more people or entities own…
Q: Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in…
A: A partnership is a contract between two or more persons to form a business and share profits and…
Q: Virginia Day owns a 5 percent limited partnership interest in Zulu Limited Partners. In Year 4 the…
A: 1] Year 4 loss suspended due to tax basis limitation Ans : A loss suspended due to…
Q: split profits and losses according to a 40/60 ratio. Additionally, the partnership will provide…
A: Given:
Q: Nancy contributed property to the newly formed EB Partnership. The property had a $100,000 adjusted…
A: The basis of a partnership interest is the amount of money that a partner has contributed to the…
Q: [The following information applies to the questions displayed below.] Jenkins has a one-third…
A: Loss:A loss from partnership is deductible against any other income of partner. The loss to be…
Q: George receives a one-third partnership interest(both capital and profits) in the Cochran & Cherry…
A: As per Internal Revenue Service, the partnership firm is a flow through entity that means the…
Q: Joy is a 30 percent partner in the JOM Partnership when she sells her entire interest to Hope for…
A: A partnership is a formal agreement between two or more parties to manage and start operating a…
Q: Joy is a 30 percent partner in the JOM Partnership when she sells her entire interest to Hope for…
A: SOLUTION- A PARTNERSHIP IS A KIND OF BUSINESS WHERE A FORMAL AGREEMENT BETWEEN TWO OR MORE PEOPLE IS…
Q: Abner and Bimbo have just formed a partnership, Abner contributed cash of $2,346,000 and office…
A: Given Information: Contributions by Abner : Cash $2,346,000 Office…
Q: Que, Rae, and Sye are in the process of liquidating their partnership. Sye has agreed to accept the…
A: Working Notes: 1. Possible Loss on Non-cash Assets : Inventory loss = fair value - book value =…
Q: John and Beth form a limited partnership, Jumping Beans, L.P. John, the general partner,…
A: It is the change in material amount of the assets or securities recorded at their initial cost. The…
Q: Rubio recently invested $31,500 (tax basis) in purchasing a limited partnership interest in which he…
A: Limited partnership (LP) is a type of partnership organization that limits the personal liability of…
Q: How much FICA and/or self-employment tax is Huxley required to pay on her compensation and his share…
A: Self-employed individuals have to pay self-employment tax. This tax is calculated from the net…
Q: their original made a profit
A: Agustin and Biag are partner in partnership firm .they are sharing profit in the ratio of Capital…
Q: ar, Janice invested $2,000 (tax basis and at-risk basis) into ABC limited partnership (a passive…
A: Partnership - In a partnership, parties who are referred to as business partners agree to work…
Q: Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the…
A: A partnership interest is the percentage of a partnership owned by a particular member or…
Q: The Lexington partnership has a depreciable business asset (personal property) that it originally…
A: The benefit made on the selling of depreciable capital assets that should be declared as regular…
Q: Anna and Ben formed a partnership. Anna contributed cash of P786,000 and office equipment costing…
A: Partnership: Partnership is a form of business organization in which two or more two individuals…
Q: When Kevin and Marshall formed the equal KM LLC, the fair market values of their interests were…
A: The basis of the property contributed by partners to the partnership firm is determined for the…
Q: Car and Lam establish an equal partnership in both equity and profits to operate a used-furniture…
A: ParticulersCarLamFurnitue Inventory$160,000Cash$60,000Delivery equipment$60,000Total…
Q: Sophia purchased 1/2 of Jay's interest and share in profit in the JC Partnership by paying Jay…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Part 'a' of 'a-d' was answered. Damarcus is a 50 percent owner of Hoop (a business entity). In the…
A: Allowable deduction of loss = $50,000
Q: Veatrice received $10,000 Cash and a Capital Asset with an Adjusted Basis of $6,000 and a Fair…
A: Whenever a partnership firm is liquidated, then each partner receives amount of cash or assets.…
Q: Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current…
A: Sales revenue= $470,000 Cost of goods sold= $450,000 Operating expenses= $55,000 Long-term capital…
Q: When Nasa Properties LLC was formed, Nova contributed land (valye of $200,000 and basis of $50,000)…
A: Nova and Oscar are two partners forming an agreement to start Nasa properties LLC. They bought in…
Q: Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash…
A: In such type of question we add cash and inventory with inside value and deduct the partnership…
Q: DeWar's basis in the DW Partnership is $116,000. In aproportionate liquidating distribution, DeWar…
A: In the given situation, Mr. D will not recognize any loss or gain because
Q: Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave received $96,000…
A: The current FICA tax rate is 7.65% (i.e. social security tax rate of 6.2% and medicare tax rate of…
Q: Katrina was an S corporation shareholder. After her initial contributions, she had the following tax…
A: Stockholder's Equity includes the amount contributed by shareholders issued in the form of common…
Q: Rob contributed P30,000 cash, a tract of land, and delivery equipment. Joe contributed P60,000 cash.…
A: It is an agreement made formally between two or more persons to operate and manage business with a…
Q: What are the amount and character of Kimberly's recognized gain or loss on the distribution? What…
A: Capital gain refers to the profit that is earned after selling assets like bonds, stocks, real…
Q: Alice and Bob, married filing jointly, own AB, LLC (which they tax as a partnership). The LLC is not…
A: Given are the details provided in the question: Total unadjusted basis of property of AB LLC =…
Nancy was a general partner in Styx Enterprises. When her outside basis was $70,000, she received a liquidating distribution of $59,000 plus some industrial equipment. The
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y Mountain Partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by a $142,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain Partnership does not have any liability. b. What is Cosmo's tax basis in his partnership interest? Please only typing answerKim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $22,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $142,000, Cost of Goods Sold - $82,000, Depreciation Expense - $41,000, Long-Term Capital Gains - $7,000, Qualified Dividends - $5,200, and Municipal Bond Interest - $3,200. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? Multiple Choice ($3,000). $10,600. $13,800. $19,000. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in Suz-Anna GP (a general part- nership in which both partners are active owners). Anna contributed land and a building valued at $640,000 (basis of $380,000) in exchange for the remaining 60% interest. Anna’s property was encumbered by qualified nonrecourse financing of $100,000, which was assumed by the partnership. The partnership reports the following income and expenses for the current tax year: Sales $560,000 Utilities, salaries, depreciation, and other operating expenses 360,000Short-term capital gain 10,000 Tax-exempt interest income 4,000 Charitable contributions (cash)…
- John, a limited partner of Candy Apple, LP, is allocated $32,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $22,000 and his at-risk amount is $12,000. John also has ordinary business income of $22,000 from Sweet Pea, LP, as a general partner and ordinary business income of $8,200 from Red Tomato as a limited partner. How much of the $32,000 loss from Candy Apple can John deduct currently? Multiple Choice $8,200 $12,000 $23,800 $32,000Cheryl 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 aboveCosmo contributed land with a fair market value of $387,500 and a tax basis of $94,500 to the Y Mountain partnership in exchange for a 25 percent profits and capital interest in the partnership. The land is secured by a $133,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain partnership does not have any liability. (Leave no answer blank. Enter zero if applicable.) b. What is Cosmo's tax basis in his partnership interest? Tax basis
- Newton is a one-third owner of ProRite Partnership. Newton has decided to sell his interest in the business to Betty for $50,000 cash plus the assumption of his share of ProRite’s liabilities. Assume Newton’s inside and outside bases in ProRite are equal. ProRite shows the following balance sheet as of the sale date: Tax Basis FMV Assets Cash $ 80,000 $ 80,000 Receivables 25,000 25,000 Inventory 40,000 85,000 Land 30,000 20,000 Totals $ 175,000 $ 210,000 Liabilities and capital Liabilities $ 60,000 Capital— Newton 38,333 Capital— Barbara 38,334 Capital— Liz 38,333 Totals $ 175,000 What are the amount and character of Newton’s recognized gain or loss?Monica contributes appreciated property (.e, Adjusted Basis of $65,000 and Fair Market Value of $100,000) to her business entity in a transaction which qualifies for nonrecognition of galin. Monica's ownership interest in the business entity is sbety percent (60%). The business entity later sells the appreciated property for $110,000. The property is not deprecdable. If the entity is a Regular (9 Corporation, Monica's Gross Income is increased from the sale of the property by the Corporation by $41,000, O True False QUESTION 5 Actual Dividends pald to shareholders of a Regular (C) Corporation result in Double Taxation. Likewise, Constructive Dividends (eg. Personal use of corporate property by a shareholder, etc.) result in Double Taxation. O False O TrueDave and his friend Stewart each owns 50 percent of KBS. During the year, Dave received $86,000 compensation for services he performed for KBS during the year. He performed a significant amount of work for the entity, and he was heavily involved in management decisions for the entity (he was not a passive investor in KBS). After deducting Dave's compensation, KBS reported taxable income of $34,400. How much FICA and/or self-employment tax is Dave required to pay on his compensation and his share of the KBS income if KBS is formed as a C corporation, an S corporation, or a limited liability company (taxed as a partnership) (ignore the 0.9 percent additional Medicare tax)? How much FICA tax would the entity be required to pay on the compensation paid to Dave? Note: Do not round any percentage calculations. Round other intermediate calculations and final answers to the nearest whole dollar amount. C Corporation S Corporation Limited liability company
- Zoey contributed land with a tax basis of $45,000 and a fair market value of $100,000 in exchange for a 20% percent interest in the new formed ZAT Partnership. All other partners contributed cash and ZAT partnership has no liabilities. How much income must Zoey recognize as a result of the transaction? Question 4 options: a) $0. b) $20,000. c) $45,000. d) $55,000. e) $100,000.Lewis, Sadie and Warren are partners with the following capital balances and profit and loss percentages: Lewis: $120,000 (60%) Sadie: $ 60,000 (20%) Warren: $ 40,000 (20%) Sadie wishes to withdraw from the partnership and it is agreed that she will receive her current capital balance plus his share of any valuation adjustments associated with the fair value of the whole business being greater than book value. Assume that the fair value of the whole business is $100,000 greater than the book value. The bonus method is being used. What will the balance of Warren’s capital account be after the withdrawal of Sadie.
