ZuoTi.Pro
Question

Cindy sold her interest in a partnership for $30,000 cash when her outside basis was $12,000....

Cindy sold her interest in a partnership for $30,000 cash when her outside basis was $12,000. She was releived of her $20,000 share of partnership liabilities. What is Cindys recognized gain or loss feom yhe sale of her partnership interest.
12.000
32.000
38.000
40.000
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

Correct answer is:

38.000

Explanation:

Recognized gain = Sale value + Relieve of Partnership liabilities - basis

= $30,000 + $20,000 - $12,000

= $38,000

As such option C is correct and other options A, B and D are incorrect.

0 0
Add a comment
Know the answer?
Add Answer to:
Cindy sold her interest in a partnership for $30,000 cash when her outside basis was $12,000....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 34 of 75. Zarah sold her interest in a partnership for $15,000 cash when her...

    Question 34 of 75. Zarah sold her interest in a partnership for $15,000 cash when her outside basis was $6.500. She was relieved the $30,000 share of partnership liabilities. What is Zarah's recognized gain or loss from the sale of her partnership interest? $10,000 $15.000 $40,000 $45,000 •wrong in Test Mark for follow up in less

  • Kenya sells her 20% partnership interest having a $30,000 basis to Ebony for $40,000 cash. At...

    Kenya sells her 20% partnership interest having a $30,000 basis to Ebony for $40,000 cash. At the time of the sale, the partnership has no liabilities and its assets are as follows: Basis FMV Cash $20,000 $20,000 Unrealized receivables 0 40,000 Inventory 10,000 40,000 Land (Sec. 1231) 120,000 100,000 Kenya and Ebony have no agreement concerning the allocation of the sales price. Ordinary income recognized by Kenya as a result of the sale is A) $6,000. B) $10,000. C) $12,000....

  • 11.4: a. F sells her interest in the equa al FG partnership for $20,000 cash. F's basis, includin...

    11.4: a. F sells her interest in the equa al FG partnership for $20,000 cash. F's basis, including her share of partnership liabilities, is $40,000. Partnership liabilities are split equally between F and G before the sale. F has owned the partnership interest for more than one year. The partnership owns a $65,000, and are col lection of valuable antiques (holding period: two years) that have a FMV of $50,000 and a basis of $20,000. What is F's gain or...

  • Erin’s interest in the EPG Partnership is liquidated when his basis in the interest is $30,000....

    Erin’s interest in the EPG Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and an FMV of $30,000. Erin will recognize A) no gain or loss. B) $2,000 capital loss. C) $2,000 ordinary loss. D) $10,000 capital loss and $20,000 ordinary loss.

  • 1) ABC Partnership distributes $12,000 to partner Al. Al's distributive share of partnership income is $30,000....

    1) ABC Partnership distributes $12,000 to partner Al. Al's distributive share of partnership income is $30,000. Al is taxed on $12,000. (true or false) 2) Yong contributes a machine having an adjusted basis of $20,000 and a FMV of $25,000 for a 10% partnership interest. Yong had taken $10,000 of depreciation prior to the contribution. The partnership has no liabilities. As a result of the contribution, Yong must recognize A) no gain or loss. B) $5,000 Sec. 1245 gain. C)...

  • of disposition LAR Partner A wishes to sell her interest in a partnership to a outside...

    of disposition LAR Partner A wishes to sell her interest in a partnership to a outside date individual. Her adjusted basis at the an of dism is $15ooo. The partnership Property is valued as follows: Book! FMV Cash 0 Inventory 75,000 Land 12,000 Equipment 10,000 sale? (realized Not recognized) 1. What is the realized gain on the 2. what portion of the realized gain is ordinary income? * Partner A and 3 others hold equal shares. 48.000 36,000 100,000 80,000...

  • Shauna is a 50 percent partner in the SH Partnership. Shauna sells one-half of her interest to Kara for $60,000 cash. Ju...

    Shauna is a 50 percent partner in the SH Partnership. Shauna sells one-half of her interest to Kara for $60,000 cash. Just before the sale, Shauna's basis in her entire partnership interest is $150,000, including her $60,000 share of the partnership liabilities. SH's assets on the sale date are as follows: Assets Basis FMV Cash $80,000 $80,000 Inventory 60,000 $180,000 Land held for investment 160,000 100,000 Total $300,000 $360,000 What is the amount and character of Shauna's gain or loss...

  • Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis FMV Cash...

    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...

  • FMV. Partner A wishes to sell her interest in a partnership to an outside individual. Her...

    FMV. Partner A wishes to sell her interest in a partnership to an outside individual. Her adjusted basis at the date of disposition is $15,000. The partnership property is valued as follows: Book! Cash Basis 48,000 48.000 AR 36,000 Inventory 75,000 100,000 Land 50,000 80,000 Equipment 10,000 12,000 1. What is the realized gain on the sale? 2. What portion of the realized gain is ordinary income?

  • Jenna began the tax year with a tax basis of $30,000 in her partnership interest. Her...

    Jenna began the tax year with a tax basis of $30,000 in her partnership interest. Her share of partnership debt consists of $11,000 of recourse debt and $14,000 of nonrecourse debt at the beginning of the year and $11,000 of recourse debt and $18,000 of nonrecourse debt at the end of the year. During the year, she was allocated $50,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $7,000 of passive income...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT