South-western Federal Taxation 2018: Individual Income Taxes
41st Edition
ISBN: 9781337385886
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 35P
LO.2 In the current year, Bill Parker (54 Oak Drive, St. Paul, MN 55164) is considering making an investment of $60,000 in Best Choice
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Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $180,000. However, the building carries a $56,000 mortgage that will be assumed by the partnership. Smart is
investing $120,000 cash. The balance of Maxwell's Capital account will be:
Multiple Choice
$180,000.
$124,000.
$56,000.
$64,000.
$60,000.
6. On June 30, 2020, the balance sheet for the partnership of Cabe, Danila, and
Ellie, together with their respective profit and loss ratios, were as follows:
P585,000
29,250
136,500
Assets, at cost
Cabe, loan
Cabe, capital (20%).
Danila, capital (20%)
Ellie, capital (60%)
126,750
1.
292,500
P585,000
Total
Cabe has decided to retire from the partnership. By mutual agreement, the
assets are to be adjusted to their fair value of P702,000 at June 30, 2020. t.
was agreed that the partnership would pay Cabe P198,900 cash for Cabe's
partnership interest, including Cabe 's loan which is to be repaid in full. No
goodwill is to be recorded. After Cabe's retirement, what is the balance of
Danila's capital account?
a. P118,462.50
b. P126,750
C. P147,712.50
d. P150,150
Chapter 11 Solutions
South-western Federal Taxation 2018: Individual Income Taxes
Ch. 11 - Prob. 1DQCh. 11 - List some events that increase or decrease an...Ch. 11 - Roberto invested 18,000 in a chicken production...Ch. 11 - Prob. 4DQCh. 11 - Carlos owns an interest in an activity that...Ch. 11 - Kim owns an interest in an activity that produces...Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - LO.3 Bronze Corporation has 100,000 of active...Ch. 11 - LO.4 Discuss what constitutes a passive activity.
Ch. 11 - Prob. 11DQCh. 11 - LO.5 How many hours must a participant work in a...Ch. 11 - LO.5 Suzanne owns interests in a bagel shop, a...Ch. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - LO.5 Some types of work are counted in applying...Ch. 11 - LO.5 Last year Alans accountant informed him that...Ch. 11 - Prob. 18DQCh. 11 - Prob. 19DQCh. 11 - Prob. 20DQCh. 11 - What is a real estate professional? Why could...Ch. 11 - Prob. 22DQCh. 11 - LO.8 Since his college days, Charles has developed...Ch. 11 - LO.8 Brad owns a small townhouse complex that...Ch. 11 - Prob. 25DQCh. 11 - Prob. 26DQCh. 11 - LO.2 In the current year, Ed invests 30,000 in an...Ch. 11 - Prob. 28CECh. 11 - Prob. 29CECh. 11 - LO.7 Rhonda has an adjusted basis and an at-risk...Ch. 11 - Prob. 31CECh. 11 - LO.9 Rose dies with passive activity property...Ch. 11 - Prob. 33CECh. 11 - Prob. 34PCh. 11 - LO.2 In the current year, Bill Parker (54 Oak...Ch. 11 - LO.2, 11 Heather wants to invest 40,000 in a...Ch. 11 - Prob. 37PCh. 11 - Prob. 38PCh. 11 - Prob. 39PCh. 11 - LO.3, 11 Emily has 100,000 that she wants to...Ch. 11 - LO.3 Seojun acquired an activity several years...Ch. 11 - LO.3, 11 Jorge owns two passive investments,...Ch. 11 - LO.3 Sarah has investments in four passive...Ch. 11 - LO.3 Leon sells his interest in a passive activity...Ch. 11 - LO.3 Ash, Inc., a closely held personal service...Ch. 11 - Prob. 46PCh. 11 - LO.2, 3, 7, 11 Kristin Graf (123 Baskerville Mill...Ch. 11 - LO.2, 3, 7, 11 The end of the year is approaching,...Ch. 11 - Prob. 49PCh. 11 - Grace acquired an activity four years ago. The...Ch. 11 - Prob. 51PCh. 11 - Prob. 52PCh. 11 - LO.3, 8 Several years ago Benny Jackson (125 Hill...Ch. 11 - Prob. 54PCh. 11 - Prob. 55PCh. 11 - Prob. 56PCh. 11 - Prob. 57PCh. 11 - Prob. 58PCh. 11 - LO.8 Jiu has 105,000 of losses from a real estate...Ch. 11 - Prob. 60PCh. 11 - LO.9 In the current year, Abe gives an interest in...Ch. 11 - Prob. 62PCh. 11 - Prob. 63PCh. 11 - Prob. 64PCh. 11 - Carol is a successful physician who owns 100% of...Ch. 11 - Prob. 2RPCh. 11 - Prob. 3RPCh. 11 - Prob. 4RPCh. 11 - Which of the following statements regarding...Ch. 11 - Michael owns a rental house that generated a...Ch. 11 - Prob. 3CPACh. 11 - Prob. 4CPA
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- Josiah Barlow, Patty DuMont, and Owen Maholic are contemplating the formation og a partnership. According to the partnership agreement, Barlow is to invest $60,000 and devote one-half time, DuMont is to invest $40,000 and devote three-fourths time, and Maholic is to make no investment and devote full time. Would Maholic be correct in assuming that since he is not contributing any assets to the firm, he is risking nothing? Explain.arrow_forwardQUestion-based on partnership. I have tried it but incorrect answer.arrow_forward35. Help me selecting the right answer. Thank youarrow_forward
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