1. True/ False The partnerships holding period for assets contributed to the partnership by a par...
1. True/ False The partnerships holding period for assets contributed to the partnership by a partner begins with the date the assets are contributed.
2. True/False A partner’s share of liabilities is generally based on her or his economic risk of loss in the case of recourse debt and loss-sharing ratio in the case of nonrecourse debt.
3. True/False A has been a partner in the ABC Partnership for only four months. During the current year, the partnership sold investment land that is purchased six years ago and recognized a $100,000 gain. A’s distributive share of this gain is a long-term capital gain.
4. True/ False A 70 Percent partner has a $5,000 recognized loss when he sells equipment with a basis of $35,000 to the partnership at its FMV of $30,000.
Homework Answers
Add Answer to:
1. True/ False The partnerships holding period for assets contributed to the partnership by a par...
Liquidating Partnerships Prior to liquidating their partnership, MacPherson and Dunn had capital accounts of $35,00...
Liquidating Partnerships Prior to liquidating their partnership, MacPherson and Dunn had capital accounts of $35,000 and $66,000, respectively. Prior to liquidation, the partnership had no cash asse other than what was realized from the sale of assets. These partnership assets were sold for $120,000. The partnership had $3,000 of liabilities. MacPherson and Dunn share Income and losses equally. Determine the amount received by MacPherson as a final distribution from liquidation of the partnership. X 1. Begin with MacPherson equity prior...
Partnership
On January 1, Bruce, Melissa, Eric, and Finn formed a partnership. The contributions of the individuals are listed below. Bruce receives a 20% partnership interest, Melissa receives a 50% partnership interest, Eric receives a 20% partnership interest, and Finn receives a 10% interest. They share the economic risk of loss from recourse liabilities according to their partnership interests.PartnerProperty ContributedBasis to PartnerBruceAccounts Receivable$0MelissaLand$28,000Building$47,000EricServices?FinnMachinery$60,000Melissa has claimed $12,000 of straight-line MACRS depreciation on the building. The land and building are subject to a...
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,...
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)...
Liquidating Partnerships Prior to liquidating their partnership, Todd and Gentry had capital accounts of $20,000 and...
Liquidating Partnerships Prior to liquidating their partnership, Todd and Gentry had capital accounts of $20,000 and $29,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $46,000. The partnership had $1,000 of liabilities. Todd and Gentry share income and losses equally. Determine the amount received by Todd as a final distribution from liquidation of the partnership. Check My Work 1. Begin with Todd...
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Ericson had capital accounts of $23,000 and...
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Ericson had capital accounts of $23,000 and $39,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $59,000. The partnership had $2,000 of liabilities. Fowler and Ericson share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership. 36,500 x Feedback Check My Work 1....
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Gentry had capital accounts of $16,000 and...
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Gentry had capital accounts of $16,000 and $29,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $40,000. The partnership had $2,000 of liabilities. Fowler and Gentry share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership. 19,500 X Feedback Check My Work 1....
68. Which of the following statements is false? Partners may contribute additional capital to the partnership...
68. Which of the following statements is false? Partners may contribute additional capital to the partnership in the form of cash and other assets Withdrawals of cash by the partners are called "drawings." The partnership income statement includes revenues and expenses but not salary paid to partners A) B) C) D) All of the above are true 69. Which of the following statements about the allocation of partnership profit or loss is false? A) Partnership agreements sometimes allow for a...
READING: PARTNERSHIP LIQUIDATION To-Do Date: Feb 18 at 11:59pm PARTNERSHIP LIQUIDATION BY LUMP-SUM METHOD Steps: 1....
READING: PARTNERSHIP LIQUIDATION To-Do Date: Feb 18 at 11:59pm PARTNERSHIP LIQUIDATION BY LUMP-SUM METHOD Steps: 1. To record proceeds of sales of assets any loss on sales is debited to "loss on realization or credited "gain on realization 2. Any gain or loss on realization is is distributed to capital accounts 3. To record payment of liabilities 4. To record payment of partners loan 5. Cash distribution to partners. However, at the time of liquidation, partners loan need not be...
1. The limited liability company may elect to be manager-managed rather than member-managed, which means that...
1. The limited liability company may elect to be manager-managed rather than member-managed, which means that only authorized members may legally bind the corporation. a. True b. False 2. A corporation is a separate entity for accounting purposes but not for legal purposes. a. True b. False — 3. When compared to a corporation, one of the major disadvantages of the partnership is its limited life. a. True b. False _ 4. Each partner may withdraw the assets he or...
Liquidating Partnerships Prior to liquidating their partnership, MacPherson and Dunn had capital accounts of $35,000 and $66,000, respectively. Prior to liquidation, the partnership had no cash asse other than what was realized from the sale of assets. These partnership assets were sold for $120,000. The partnership had $3,000 of liabilities. MacPherson and Dunn share Income and losses equally. Determine the amount received by MacPherson as a final distribution from liquidation of the partnership. X 1. Begin with MacPherson equity prior...
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,...
Liquidating Partnerships Prior to liquidating their partnership, Todd and Gentry had capital accounts of $20,000 and $29,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $46,000. The partnership had $1,000 of liabilities. Todd and Gentry share income and losses equally. Determine the amount received by Todd as a final distribution from liquidation of the partnership. Check My Work 1. Begin with Todd...
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Ericson had capital accounts of $23,000 and $39,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $59,000. The partnership had $2,000 of liabilities. Fowler and Ericson share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership. 36,500 x Feedback Check My Work 1....
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Gentry had capital accounts of $16,000 and $29,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $40,000. The partnership had $2,000 of liabilities. Fowler and Gentry share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership. 19,500 X Feedback Check My Work 1....
68. Which of the following statements is false? Partners may contribute additional capital to the partnership in the form of cash and other assets Withdrawals of cash by the partners are called "drawings." The partnership income statement includes revenues and expenses but not salary paid to partners A) B) C) D) All of the above are true 69. Which of the following statements about the allocation of partnership profit or loss is false? A) Partnership agreements sometimes allow for a...
READING: PARTNERSHIP LIQUIDATION To-Do Date: Feb 18 at 11:59pm PARTNERSHIP LIQUIDATION BY LUMP-SUM METHOD Steps: 1. To record proceeds of sales of assets any loss on sales is debited to "loss on realization or credited "gain on realization 2. Any gain or loss on realization is is distributed to capital accounts 3. To record payment of liabilities 4. To record payment of partners loan 5. Cash distribution to partners. However, at the time of liquidation, partners loan need not be...
1. The limited liability company may elect to be manager-managed rather than member-managed, which means that only authorized members may legally bind the corporation. a. True b. False 2. A corporation is a separate entity for accounting purposes but not for legal purposes. a. True b. False — 3. When compared to a corporation, one of the major disadvantages of the partnership is its limited life. a. True b. False _ 4. Each partner may withdraw the assets he or...
Most questions answered within 3 hours.
-
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 48 minutes ago -
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 58 minutes ago -
The length of stay at a specific emergency department in
Phoenix, Arizona, in 2009 had a...
asked 14 minutes ago -
. Please give the mechanism for this type of problem. Step by
Step
The toxin that...
asked 18 minutes ago -
If you have a 1M stock solution and you want to dilute 1 :10
with water,...
asked 20 minutes ago -
In a load instruction, the effective address is obtained by
A) Retriving the address from a...
asked 20 minutes ago -
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions)...
asked 21 minutes ago -
A mutual fund salesperson has arranged to call on four people
tomorrow. Based on past experience...
asked 54 minutes ago -
Let the RV Y has the pdf
f ( y ) = 6 y ( 1...
asked 1 hour ago -
Question 12
Where should a copy of a private key should be placed so it is...
asked 23 minutes ago -
What is the entropy change to the surroundings when 1 mol of ice
melts in someone's...
asked 42 minutes ago -
Pt1
An electrochemical cell is set up at 25°C based on the overall
reaction represented by...
asked 49 minutes ago