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What is the gain realized by Sal_

What is the gain realized by Sal_

FINANCIAL ACCOUNTING
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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Please help me with B, E, F
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
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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