Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 10, Problem 6P
To determine
Introduction:
In each case, the amount of gain or loss on the transfer of property and interest in the partnership.
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1. Nan and Lew formed an equal partnership. Nan contributes property with an adjusted basis of $75,000 to a partnership. The property has a fair market value of $120,000 on the date of the contribution.
a. What is the partnership’s basis in the property contributed by Nan?
$ _________________
b. What is the amount of gain recognized by Nan in this transaction?
$ __________________
c. Lew performs services valued at $105,000 for the partnership for his one-third interest in the partnership.
Income or gain recognized $____________
His basis in the Partnership interest $____________
uanita contributes property with a fair market value of $154,200 and an adjusted basis of $46,260 to a partnership in exchange for a 25 percent partnership interest.
If an amount is zero, enter "0".
Question Content Area
a. Calculate the amount of gain recognized by Juanita as a result of the transfer of the property to the partnership
b. Calculate Juanita's basis in his partnership interest immediately following the contribution to the partnership.
Subject: acounting
Chapter 10 Solutions
Income Tax Fundamentals 2020
Ch. 10 - Which of the following may not be treated as a...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQCh. 10 - Abigail contributes land with an adjusted basis of...Ch. 10 - Prob. 8MCQCh. 10 - Prob. 9MCQCh. 10 - Prob. 10MCQ
Ch. 10 - Prob. 11MCQCh. 10 - Prob. 12MCQCh. 10 - Prob. 13MCQCh. 10 - Prob. 14MCQCh. 10 - Prob. 15MCQCh. 10 - Prob. 16MCQCh. 10 - Kendra is an attorney and owns 60 percent of a law...Ch. 10 - Prob. 18MCQCh. 10 - In 2019, Gloria, a single taxpayer, receives a...Ch. 10 - Prob. 20MCQCh. 10 - Prob. 21MCQCh. 10 - Prob. 22MCQCh. 10 - Prob. 23MCQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16P
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- Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the abovearrow_forwardBlake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.arrow_forwardDetermine Julie's basis in her partnership interest and tax return effects. Also, determine Julie's basis in any property received as a distribution from the partnershiparrow_forward
- can you please help answer thisarrow_forwardDouglas pays Selena $44,100 for her 27% interest in a partnership with net assets of $127,300. Following this transaction, Douglas's capital account should have a credit balance of a.$44,100 b.$11,907 c.$34,371 d.$127,300arrow_forwardOscar and Frank form an equal partnership, the O and F Partnership. Oscar contributes land with an adjusted basis of $45,000, subject to a mortgage of $100,000, in exchange for a partnership interest worth $250,000. Frank contributes cash of $100,000 and performs services for the partnership in exchange for a partnership interest worth $250,000. a. What is the amount of Oscar's recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership interest? b. What is Oscar's basis in his partnership interest immediately after the contribution? c. What is the amount of Frank's recognized income or loss (if any) as a result of the receipt of the partnership interest in exchange for the cash and services? d. What is the partnership's basis in the land received from Oscar?arrow_forward
- 1. 15) H has beginning basis in his partnership interest of $500. During the year H is allocated $100 of partnership income, $500 of partnership losses, and receives a cash distribution of $400. What amount of the partnership losses, if any, will H be able to recognize in the current tax year? Please explain how you get the answer A) $500 B) $400 C) $300 D) $200arrow_forwardJohn has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000 cash, accounts receivable ($12,000 A/B. $16.000 FMV) and land ($3,000 A/B, $8.000 FMV) The basis of his partnership interest following the distribution is Selected Answer: Ⓒa. 50 Answers: 0.50 b. $5,000 c. $1,000 d. ($4,000) Darrow_forward
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