Molly Grey ( Single) Acquired a 30 % limited partnership Interest in Beau | |||
Geste LLP$ | 49,500 | ||
Year 1 - Risk amount $ 30,000 | |||
Year 1 - beau incur loss of $ 214500 and does not distribute to partner | |||
In Year 1- Molly AGI ( Excluding loss and Income)$ 65,000 | |||
This Include passive Income of $ 10,600 | |||
Risk Analysis | |||
Year 1- Risk amount $ | 30,000 | ||
So maxium loss allowed to set off$ | -30,000 | ||
So At the end of year 1 - risk = $ | - | ||
Year 2 | |||
Molly contributed Addition $ | 29,550 | ||
Add- Bau generated income = $ 36500 | |||
Share of Molly on beau 30%* $ 36500 | 10,950 | ||
Max allowed Loss $( as calculated below) | -34,350 | ||
Risk at Year end 2 | 6,150 | ||
Year 1 Loss made by Beau $ | 2,14,500 | ||
30% share of loss - Molly(30%*$214500 | 64,350 | ||
Less= Risk Allowed ( as above - year 1) | 30,000 | ||
Risk Disallowed $ | 34,350 | ||
Risk Allowed LOSS calculation | Total Loss($)-a | Risk allowed ($)-b | RiskDis allowed ($)-(a-b) |
Year -1 | 64,350 | 30,000 | 34,350 |
Year -2 | 34,350 | 34,350 | - |
Passive way Risk Allowed LOSS calculation | Risk allowed ($)-b | Passive Active Loss Allowed $)-d | Passive Active Loss DisAllowed $(b-d) |
Year -1 | 30,000 | 10,600 | 19,400 |
( as per Question) | |||
Year -2 | 34,350 | 18,490 | 15,860 |
19,400 | 19,400 | ||
Passive Active Loss DisAllowed $ | 35,260 | ||
In case of Year 2 | |||
Beau generated Income $ | 36,500 | ||
Molly Share 30% on $ 36500 | 10,950 | ||
Add- passive Income $ | 7,540 | ||
Passive Active Loss Allowed $ | 18,490 |
Year 2 | Amnt($) |
Molly Income | 68,900 |
Add-Yesr 2 -Molly Share 30% on $ 36500- passive income from Beau | 10,950 |
Less-Year 2- Passive Active Loss $( as above) | 18,490 |
Year 2 AGI | 61,360 |
Return to question Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $48,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $180,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $60,000. This includes $10,000 of passive income from other passive activities. In...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $60,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $29,000. In year 1, Beau Geste incurs a loss of $195,500 and does not make any distributions to the partners. • In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $74,400. This includes $11,000 of passive income from other passive activities....
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $49,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $30,500. In year 1, Beau Geste incurs a loss of $228,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $79,400. This includes $12,000 of passive income from other passive activities. In...
Please answer Req 2a Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business, to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in the townhouse was $600,000, and she has claimed $250,000 of depreciation deductions against the asset...
Please answer Req a3 Required information Problem 3-52 (LO 3-5) (The following information applies to the questions displayed below.] Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business, to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in...
Please answer Req a1 Required information Problem 3-52 (LO 3-5) [The following information applies to the questions displayed below.] Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business, to buy a place somewhere sunny and warm. Tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. The original basis in...
The information on the following page was obtained from the records of Breanna Inc.: Accounts receivable Accumulated depreciation Cost of goods sold Income tax expense Cash Net sales Equipment Selling, general, and administrative expenses Common stock (8,700 shares) Accounts payable Retained earnings, 1/1/19 Interest expense Merchandise inventory Long-term debt Dividends declared and paid during 2019 $ 10,000 50.900 126,000 9.500 61,500 192,000 123,000 38,000 91,000 12,800 32,650 5,600 37,300 38,000 6,450 Except as otherwise indicated, assume that all balance sheet...
On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $50,000 with an estimated residual value of $5,000. a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2018. -a-2. Prepare a complete depreciation table under the 200 percent declining balance method. Assume that a full year of depreciation w taken in 2018. a-3. Prepare a...
Gilman's Café is a popular restaurant in a local tourist town. Sarah Gilman, who opened the restaurant five years ago, has seen it grow steadily. Currently, Gilman's is only open for dinner, but many of her regular customers have been asking Sarah to consider opening for lunch as well. Sarah has been talking to her accountant about the financial impact of the expanded services on the overall business. She knew that the café did not make much money and she...
Iuary 2, 2018, Jatson Corporation acquired a new was $50,000 with an estimated residual value of $5.000 w machine with an estimated useful life of five years. ated useful life of five years. The cost of the equipmu a-1. Prepare a Tepare a complete depreciation table under the straight-line mein a-2. Prepare a complete deprecia taken in 2018. e a complete depreciation table under the 200 percent declining. a-3. Prepare a come pare a complete depreciation table under the 150...