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David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash of $9.000 and two capital assets: (1) land 1 with a fair market value of $24,000 and a basis to Jimsoo of $19,000, and (2) land 2 with a fair market value of $11,500 and a basis to Jimsoo of $19,000. Jimsoo has no liabilities. b. What is David's basis in the distributed assets? (Do not round intermediate calculations. Round your answers to the...
David’s basis in the Jimsoo Partnership is $54,500. In a proportionate liquidating distribution, David receives cash of $7,300 and two capital assets: (1) Land A with a fair market value of $20,600 and a basis to Jimsoo of $16,450, and (2) Land B with a fair market value of $10,225 and a basis to Jimsoo of $16,450. Jimsoo has no liabilities. c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David...
Required information [The following information applies to the questions displayed below.] David’s basis in the Jimsoo Partnership is $65,000. In a proportionate liquidating distribution, David receives cash of $9,400 and two capital assets: (1) Land A with a fair market value of $24,800 and a basis to Jimsoo of $19,600, and (2) Land B with a fair market value of $11,800 and a basis to Jimsoo of $19,600. Jimsoo has no liabilities. c1. If the two parcels of land had...
Parker’s basis in his PQ Partnership interest is $180,000. Parker receives a pro rata liquidating distribution consisting of $20,000 cash, land with a basis of $80,000 and a fair market value of $100,000, and his proportionate share of inventory with a basis of $60,000 to PQ and a fair market value of $75,000. Assume that PQ also liquidates. How much gain or loss, if any, must Parker recognize on the distribution? What basis will Parker take in the inventory and...
In a proportionate liquidating distribution in which the partnership is liquidated, Bill received cash of $120,000, inventory (basis of $6,000, fair market value of $8,000), and a capital asset (basis and fair market value of $16,000). Immediately before the distribution, Bill’s basis in the partnership interest was $90,000. a. How much gain or loss will Bill recognize on the distribution? b. What is Bill’s basis in the inventory and the capital asset? CLUES: a. Bill will recognize a gain to...
Tyson is a 25% partner in the KT Partnership. On January 1, KT makes a proportionate liquidating distribution of $20,000 cash and land with a $16,000 fair value (inside basis $8,000) to Tyson. KT has no liabilities at the date of the distribution. Tyson's basis in his KT partnership interest is $20,000. What is Tyson's capital gain and his basis in the distributed land?
Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis FMV Cash $40,000 $40,000 Inventory $30,000 $45,000 Unrealized receiv. $50,000 $45,000 1. Z’s basis in her partnership interest was $95,000. What is her gain or loss and the bases of the assets distributed to her? 2. Assume Z’s basis in her partnership interest was $130,000. What is her gain or loss and the bases of the assets distributed to her?Answer 1. There is no gain or...
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate liquidating distribution of $15,000 cash and inventory with a $20,000 fair value (inside basis $5,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis in her JRD partnership interest is $21,000. What is the amount and character of Daniela's gain or loss from the distribution, and what is the basis of the inventory she receives? Daniela is a 25%...
At the beginning of the year, Elsie's basis in the E&G Partnership interest is $90,000. She receives a proportionate non liquidating distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $40,000), and land (basis of $30,000, fair market value of $45,000). After the distribution, Elsie's bases in the accounts receivable, land, and partnership interest are: 7. Basis in Accounts Receivable Basis in Land Basis in the Partnership
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...