What is the gain realized by Sal_
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with B, E, F

Transcribed Image Text:On June 30 of the current tax year, Sal sells her 40% interest in the STU Partnership to new partner
James for $300,000, including Sal's share of partnership liabilities. At the beginning of the tax year, Sal's
basis in her partnership interest was $80,000 (excluding her share of partnership debt). The partnership
reported income of $240,000 for the year, and Sal's share of partnership debt was $100,000 at the sale
date. (Assume the partnership uses a monthly proration of income.) At the sale date, the partnership's
assets consist of cash ($390,000), land (basis of $180,000, fair market value of $210,000), and unrealized
receivables (basis of $0, fair market value of $150,000).
$228,000
8OK+(240Kサ.40 1/2)+ 100K =
What is Sal's basis at the sale date
What is the gain realized by Sal_
What is the gain recognized by Sal_
372,000
fee -Basi's
30K - 228← ニ
$12.000
If any gain is recognized by Sal, what is the character of the gain
*If no gain is recognized by Sal, write N/A
1SOK 440
100
72K-160k
(60k
%3D
What is James's basis in the partnership interest
What is the gain/loss realized by the Partnership
What is the gain/loss recognized by the Partnership
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