AB Corporation and YZ Corporation formed a partnership to
construct a shopping mall. AB contributed $641,000 cash, and YZ
contributed land ($641,000 FMV and $571,000 basis) in exchange for
a 50 percent interest in ABYZ Partnership. Immediately after its
formation, ABYZ borrowed $320,500 from a local bank. The debt is
recourse (unsecured by any specific partnership asset).
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $641,000...
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $641,000 cash, and YZ contributed land ($641,000 FMV and $571,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $320,500 from a local bank. The debt is recourse (unsecured by any specific partnership asset). 1. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners. ). Compute each partner's...
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $641,000 cash, and YZ contributed land ($641,000 FMV and $571,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $320,500 from a local bank. The debt is recourse (unsecured by any specific partnership asset). 1. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners. 3. Compute each partner's...
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall, AB contributed $641,000 ach and Y7 contributed land ($641.000 FMV and $571.000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $320,500 from a local bank. The debt is recourse (unsecured by any specific partnership asset). a. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners b. Compute each partner's...
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $641,000 cash, and YZ contributed land ($641,000 FMV and $571,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $320,500 from a local bank. The debt is recourse (unsecured by any specific partnership asset). a. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners. b. Compute each partner's...
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $503,000 cash, and YZ contributed land ($503,000 FEMV and $433,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $251,500 from a local bank. The debt is recourse (unsecured by any specific partnership asset). a. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners. b. Compute each partner's...
On January 1, Bruce, Melissa, Eric, and Finn formed a partnership. The contributions of the individuals are listed below. Bruce receives a 20% partnership interest, Melissa receives a 50% partnership interest, Eric receives a 20% partnership interest, and Finn receives a 10% interest. They share the economic risk of loss from recourse liabilities according to their partnership interests.PartnerProperty ContributedBasis to PartnerBruceAccounts Receivable$0MelissaLand$28,000Building$47,000EricServices?FinnMachinery$60,000Melissa has claimed $12,000 of straight-line MACRS depreciation on the building. The land and building are subject to a...
The ABCZ partnership was formed for the purpose of developing tracts of land. A, B, and C are individual limited partners and Z, a corporation, is the sole general partner. The corporation has a 20 percent interest in the part- nership and has substantial assets other than its partnership interest. The partnership agreement provides that limited partners can transfer in- come interests only with the consent of the general partner and further pro- vides that the limited partners can freely...
On January 17 of the current year, the Bamber Partnership was formed by Bob Miller, Carl Penn, and Don Allen. Each partner has an equal interest in the capital and profits of the partnership. The Bamber partnership will report on the basis of a calendar year. The following contributions were made when the partnership was formed. Parter Property Basis to Partner FMV Bob Cash 15,000 15,000 Carl Inventory 9,000 15,000 Don Captial Asset 35,000 15,000 Both the inventory and capital...
Partnerships Summers and Winters formed a partnership on January 1. Summers contributed $90,000 cash and equipment with a market value of $60,000. Winters contributed $30,000 cash and inventory with a market value of $80,000. Prepare the journal entry to record the partners' contributions to the partnership Date Account Debit Credit Partnership net income for year 1 and year 2 was $75,000 and $120,000, respectively. 1. Determine each partner's share of the net income for each year, assuming each of the...
On March 1, Eckert and Kelley formed a partnership. Eckert contributed $83,000 cash, and Kelley contributed land valued at $66,400 and a building valued at $96,400. The partnership also took Kelley’s $73,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $29,000, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On...