On January 1, Julie, Kay and Susan formed a partnership. The contribution of the three individuals...
Homework Answers
a
Julie and Kay recognize no income
Susan, recognize $20,000.
b
| PARTICULARS | JULIE ($) | KAY($) | SUSAN($) |
| Basis of property contributed | 0 | 75000 | 0 |
| Plus: share of liabilities | 16200 | 32400 | 5400 |
| Minus: liabilities assumed by partnership | - | 54000 | - |
| Plus: income recognized | 0 | 0 | 20000 |
| Basis in partnership interest | 16200 | 53400 | 25400 |
c
Accounts Receivable => 0
Land => $ 30000
Building => $ 45000
Organisational Expenditure => $20000
d
The partnership’s initial book value of each asset is the FMV at the time of contribution
Account Receivable => $6000
Land => $ 58000
Building => $ 116000
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On
January 1, Julie, Kay and Susan formed a partnership. The
contribution of the three individuals...
Partnership
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Exercise 15-2
Tom and Julie formed a management consulting partnership on January
1, 2016. The fair value of the net assets invested by each partner
follows:
Tom
Julie
Cash
$14,300
$12,500
Accounts receivable
7,600
5,400
Office supplies
1,900
900
Office equipment
29,400
—
Land
—
30,400
Accounts payable
1,900
5,300
Mortgage payable
—
19,900
During the year, Tom withdrew $14,000 and Julie withdrew $12,600 in
anticipation of operating profits. Net profit for 2016 was $53,200,
which is to be allocated...
1) ABC Partnership distributes $12,000 to partner Al. Al's distributive share of partnership income is $30,000....
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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).
Compute each partner’s initial basis in its partnership
interest, assuming that both AB and YZ are general partners.
Compute each partner’s initial basis...
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...
Exercise 15-2
Tom and Julie formed a management consulting partnership on January
1, 2016. The fair value of the net assets invested by each partner
follows:
Tom
Julie
Cash
$14,300
$12,500
Accounts receivable
7,600
5,400
Office supplies
1,900
900
Office equipment
29,400
—
Land
—
30,400
Accounts payable
1,900
5,300
Mortgage payable
—
19,900
During the year, Tom withdrew $14,000 and Julie withdrew $12,600 in
anticipation of operating profits. Net profit for 2016 was $53,200,
which is to be allocated...
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