The PW partnership's balance sheet includes the following assets immediately before it liquidates: Basis FMV Cash...
The PW partnership's balance sheet includes the following assets immediately before it liquidates: Basis FMV Cash $10,000 $10,000 Unrealized receivables -0- 10,000 Total $10,000 $20,000 In complete liquidation, PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners). Pamela and Wade each have an outside basis in PW equal to $5,000. PW has no liabilities at the time of the liquidation. a. What is the amount and character of Pamela's recognized gain or loss? b. What is the amount and character of Wade's recognized gain or loss?
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The PW partnership's balance sheet includes the following assets
immediately before it liquidates: Basis FMV Cash...
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...
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...
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...
Nichole owns a 50% interest in partnership J&K. She contributed a computer system with a FMV...
Nichole owns a 50% interest in partnership J&K. She contributed a computer system with a FMV of $15,000 and an adjusted basis of $10,00U tU un partnership. Neither Nichole nor the partnership recognized any gain when the property was contributed. Which of the following is true regarding dhe partnership's basis in the computer system and Nichole's outside basis? O Partnership's basis in computer system - $10,000, Nichole's outside basis - increases by $10,000. Partnership's basis in computer system - $10,000,...
Case Adjusted basis of Proproperty Given Up FMV of Property Received Cash received Cash paid Gain...
Case Adjusted basis of Proproperty Given Up FMV of Property Received Cash received Cash paid Gain or Loss recognized Basis of Property Received 1 70,000 59,000 6,000 - 2 40,000 36,000 5,000 - 3 30,000 25,000 - - 4 40,000 60,000 10,000 - 5 30,000 32,000 2,000 - 6 50,000 50,000 - 10,000 7 50,000...
11.3: The XYZ partnership has the following balance sheet: Basis $60,000 $27,000 $0 $30,000 $21,0...
11.3: The XYZ partnership has the following balance sheet: Basis $60,000 $27,000 $0 $30,000 $21,000 $18,000 $18,000 $87,000 FMV Land Inventory Unrealized Rec. Liabilities Capital, X Capital, Y Capital, Z $60,000 $54,000 $15,000 $30,000 $40,000 $40,000 $40,000 $150,000 . If X sells her partnership interest to W for $40,000 cash ($10,000 this year and $30,000 next year), what is her gain or loss each year, and what is its character?
11.3: The XYZ partnership has the following balance sheet: Basis...
Required information The following information applies to the questions displayed below.] Megan a...
Required information The following information applies to the questions displayed below.] Megan and Matthew are equal partners in the J &J Partnership (calendar year-end entity). On January 1 of the current year, they decide to liquidate the partnership. Megan's basis in her partnership interest is $116,000 and Matthew's is $41,400. The two partners receive identical distributions, with each receiving the following assets Tax Basis FMV Cash Inventory Land Totals $34,000 $34,000 7,400 8,560 1,480 900 $42,300 $44,040 (Leave no answer...
End AIR O 12,000 DFGHJKLD XYZ has the following balance sheet: FMV Basis 10,000 Cash 10,000...
End AIR O 12,000 DFGHJKLD XYZ has the following balance sheet: FMV Basis 10,000 Cash 10,000 13,000 20,000 Inventory 20,000 28,000 50,000 45,000 7,000 13,000 If there is a $6,000 of depreciation recapture on the Equipment, what is the FMV of partner x's one-third share of the hot assets ? Equipment Land Investments
Turnip, Inc,. an S corporation, distributes a tract of land held as an investment (FMV=$82,000, basis=$22,000)...
Turnip, Inc,. an S corporation, distributes a tract of land held as an investment (FMV=$82,000, basis=$22,000) to chang, its sole shareholder. An AAA bypass election was not made. Turnip, Inc. has an AAA balance of $10,000 an OAA balance of $15,000, a PTI balance of $5,000 and an AEP balanc eof $20,000. CHang's basis in his Turnip's stock is $20,000, has and individual marginal tax rate of 33% and a capital gains tax rate of 15%. What is Turnip's recognized...
Required information The following information applies to the questions displayed below) 1 of 4 Travis and Alix...
Required information The following information applies to the questions displayed below) 1 of 4 Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a $754 election in place. Allx sells one-half of her interest (25 percent) to Michael Tomei for $31,000 cash. Just before the sale, Alix's basis in her entire partnership interest is $76,200, including her $31,000 share of the partnership liabilities. Tralix's assets on the sale date are as follows: Book FMV...
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...
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...
Nichole owns a 50% interest in partnership J&K. She contributed a computer system with a FMV of $15,000 and an adjusted basis of $10,00U tU un partnership. Neither Nichole nor the partnership recognized any gain when the property was contributed. Which of the following is true regarding dhe partnership's basis in the computer system and Nichole's outside basis? O Partnership's basis in computer system - $10,000, Nichole's outside basis - increases by $10,000. Partnership's basis in computer system - $10,000,...
11.3: The XYZ partnership has the following balance sheet: Basis $60,000 $27,000 $0 $30,000 $21,000 $18,000 $18,000 $87,000 FMV Land Inventory Unrealized Rec. Liabilities Capital, X Capital, Y Capital, Z $60,000 $54,000 $15,000 $30,000 $40,000 $40,000 $40,000 $150,000 . If X sells her partnership interest to W for $40,000 cash ($10,000 this year and $30,000 next year), what is her gain or loss each year, and what is its character?
11.3: The XYZ partnership has the following balance sheet: Basis...
Required information The following information applies to the questions displayed below.] Megan and Matthew are equal partners in the J &J Partnership (calendar year-end entity). On January 1 of the current year, they decide to liquidate the partnership. Megan's basis in her partnership interest is $116,000 and Matthew's is $41,400. The two partners receive identical distributions, with each receiving the following assets Tax Basis FMV Cash Inventory Land Totals $34,000 $34,000 7,400 8,560 1,480 900 $42,300 $44,040 (Leave no answer...
End AIR O 12,000 DFGHJKLD XYZ has the following balance sheet: FMV Basis 10,000 Cash 10,000 13,000 20,000 Inventory 20,000 28,000 50,000 45,000 7,000 13,000 If there is a $6,000 of depreciation recapture on the Equipment, what is the FMV of partner x's one-third share of the hot assets ? Equipment Land Investments
Required information The following information applies to the questions displayed below) 1 of 4 Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a $754 election in place. Allx sells one-half of her interest (25 percent) to Michael Tomei for $31,000 cash. Just before the sale, Alix's basis in her entire partnership interest is $76,200, including her $31,000 share of the partnership liabilities. Tralix's assets on the sale date are as follows: Book FMV...
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