Mother nature and spirit world form the earth partnership. Mother nature contributes assets with a fmv...
Mother nature and spirit world form the earth partnership. Mother nature contributes assets with a fmv of 1,750,000.00 and adjusted basis of 400,000 for 60% interest in the partnership. The assets are subject to a liability of 1,200,000.00. Spirit world contributes cash of 20,000 for ther 40 percent in the partnership. how much gains is recognized for mother nature/ how much liability is allocable to spirit world. how much gain is recognized by spirt world for the contributed cash?
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Mother nature and spirit world form the earth partnership.
Mother nature contributes assets with a fmv...
Greg and Justin are forming the GJ Partnership. Greg contributes $500,000 cash and Justin contributes nondepreciable...
Greg and Justin are forming the GJ Partnership. Greg contributes $500,000 cash and Justin contributes nondepreciable property with an adjusted basis of $200,000 and a fair market value of $550,000. The Property is subject to a $50,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes Greg and Justin share in all partnership profits equally except for any precontribution gain, which must be allocated according to the statutory rules for built-in...
Interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10...
interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10,000), and equipment (FMV $2,000; basis $1,000). Sam's marginal tax rate is 24% and his long-term capital gains tax rate is 15%. 2. Sam receives a proportionate nonliquidating distribution when the basis of his partnership a. How much gain or loss does Sam recognize? Gain /Loss) b. What is Sam's tax liability/benefit on the distribution? (Liability /Benefit) c. What is Sam's basis in the inventory? d. What...
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly...
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $13,000 of cash and land with a FMV of $58,000. Her basis in the land is $23,000. Andrew contributes equipment with a FMV of $15,000 and a building with a FMV of $36,000. His basis in the equipment is $11,000, and his basis in the building is $23,000. How much gain must the SA general partnership recognize on the transfer...
MC 2-9 assu acci Almeda and Asistio are combining their separate business to form a partnership....
MC 2-9 assu acci Almeda and Asistio are combining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P600,000. The non-cash assets to be contributed and the liabilities to be assumed are as follows: Almeda Asistio BV FMV BVFMV Accounts Receivable P 40,000 P 30,000 Merchandise Inventory 60,000 90,000 P 40,000 P 80,000 Equipment 120,000 100,000 80,000 120,000 Accounts Payable 30,000 30,000 20,000 20,000 The partners' capital accounts are...
PROBLEM This year, John, Meg, and Karen form Frost Corporation. John contributes land purchased as an...
PROBLEM This year, John, Meg, and Karen form Frost Corporation. John contributes land purchased as an investment four years ago for $25,000 that has a $30,000 FMV in exchange for 30 shares of Frost stock. Meg contributes machinery purchased four years ago and used in her business having a $50,000 adjusted basis and a $30,000 FMV in exchange for 30 shares of Frost stock. Karen contributes services worth $19,500 and $500 cash in exchange for 20 shares of Frost stock....
PROBLEM : This year, John, Meg, and Karen form Frost Corporation. John contributes land purchased as...
PROBLEM : This year, John, Meg, and Karen form Frost Corporation. John contributes land purchased as an investment four years ago for $25,000 that has a $30,000 FMV in exchange for 30 shares of Frost stock. Meg contributes machinery purchased four years ago and used in her business having a $50,000 adjusted basis and a $30,000 FMV in exchange for 30 shares of Frost stock. Karen contributes services worth $19,500 and $500 cash in exchange for 20 shares of Frost...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the bu...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
FMV 2. (15 points) X Corp's balance sheet shows the following: BASIS $10.000 Cash Equipment -net...
FMV 2. (15 points) X Corp's balance sheet shows the following: BASIS $10.000 Cash Equipment -net Land 1 Land 2 $10,000 40,000 100,000 150.000 50,000 150.000 125.000 $335,000 $300,000 Total All of the stock is owned by A. Her basis is $90,000. Answer the following questions based on the above information. A. Calculate the gain or loss to X Corp. if X liquidates and distributes all assets to A. B. Calculate the gain or loss to A on the liquidation...
1.7 Amie revers Aster and Amerforming a parshin by combining their businesses. Their books show the...
1.7 Amie revers Aster and Amerforming a parshin by combining their businesses. Their books show the following: Aster Cash P 72.000 P 30,000 Accounts Receivable 150,000 108,000 Merchandise Inventory 240,000 156,000 Furniture and Fixtures 330,000 102,000 Prepaid Expenses 63.000 21.000 Accounts Payable 366,000 144,000 Aster, Capital 489.000 Amie, Capital 273,000 COURS se or los tner It has been agreed to recognize uncollectible accounts of P7,500 and P5,400 to each party, respectively, and that the furniture and fixtures of Amie are...
MC 2-8 to MC 2-20 MC 2-12, MC 2-13, MC 2-14, MC 2-15 MC 2-12, MC 2-13 , MC 2-14, MC 2-15 1.7 Amie revers As...
MC 2-8 to MC 2-20
MC
2-12, MC 2-13, MC 2-14, MC 2-15
MC 2-12, MC 2-13 , MC 2-14, MC 2-15
1.7 Amie revers Aster and Amerforming a parshin by combining their businesses. Their books show the following: Aster Cash P 72.000 P 30,000 Accounts Receivable 150,000 108,000 Merchandise Inventory 240,000 156,000 Furniture and Fixtures 330,000 102,000 Prepaid Expenses 63.000 21.000 Accounts Payable 366,000 144,000 Aster, Capital 489.000 Amie, Capital 273,000 COURS se or los tner It has been...
interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10,000), and equipment (FMV $2,000; basis $1,000). Sam's marginal tax rate is 24% and his long-term capital gains tax rate is 15%. 2. Sam receives a proportionate nonliquidating distribution when the basis of his partnership a. How much gain or loss does Sam recognize? Gain /Loss) b. What is Sam's tax liability/benefit on the distribution? (Liability /Benefit) c. What is Sam's basis in the inventory? d. What...
MC 2-9 assu acci Almeda and Asistio are combining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P600,000. The non-cash assets to be contributed and the liabilities to be assumed are as follows: Almeda Asistio BV FMV BVFMV Accounts Receivable P 40,000 P 30,000 Merchandise Inventory 60,000 90,000 P 40,000 P 80,000 Equipment 120,000 100,000 80,000 120,000 Accounts Payable 30,000 30,000 20,000 20,000 The partners' capital accounts are...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
FMV 2. (15 points) X Corp's balance sheet shows the following: BASIS $10.000 Cash Equipment -net Land 1 Land 2 $10,000 40,000 100,000 150.000 50,000 150.000 125.000 $335,000 $300,000 Total All of the stock is owned by A. Her basis is $90,000. Answer the following questions based on the above information. A. Calculate the gain or loss to X Corp. if X liquidates and distributes all assets to A. B. Calculate the gain or loss to A on the liquidation...
1.7 Amie revers Aster and Amerforming a parshin by combining their businesses. Their books show the following: Aster Cash P 72.000 P 30,000 Accounts Receivable 150,000 108,000 Merchandise Inventory 240,000 156,000 Furniture and Fixtures 330,000 102,000 Prepaid Expenses 63.000 21.000 Accounts Payable 366,000 144,000 Aster, Capital 489.000 Amie, Capital 273,000 COURS se or los tner It has been agreed to recognize uncollectible accounts of P7,500 and P5,400 to each party, respectively, and that the furniture and fixtures of Amie are...
MC 2-8 to MC 2-20
MC
2-12, MC 2-13, MC 2-14, MC 2-15
MC 2-12, MC 2-13 , MC 2-14, MC 2-15
1.7 Amie revers Aster and Amerforming a parshin by combining their businesses. Their books show the following: Aster Cash P 72.000 P 30,000 Accounts Receivable 150,000 108,000 Merchandise Inventory 240,000 156,000 Furniture and Fixtures 330,000 102,000 Prepaid Expenses 63.000 21.000 Accounts Payable 366,000 144,000 Aster, Capital 489.000 Amie, Capital 273,000 COURS se or los tner It has been...
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