Question
In: Accounting
Alex, Brian and Chris are equal partners in the ABC partnership.ABC owns a restaurant in...
Alex, Brian and Chris are equal partners in the ABC partnership. ABC owns a restaurant in Mineola and a retail music store in Asbury Park. It has $300,000 of loss from the restaurant and a $120,000 loss from the music store. Alex materially participates in the restaurant but has little to do with the music store. The partnership also earns $21,000 of interest during the year. Alex has $5,000 of passive income from his other activities. How much income or loss does Alex have from ABC, and how much of the loss can he deduct?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A. Mike owns a restaurant and hires Alex to be the evening manager. Mike discovers the...
A. Mike owns a restaurant and hires Alex to be the evening
manager. Mike discovers the restaurant is running low on coffee and
tells Alex to go across the street to Terry’s Market to buy some
more. As Alex departs, Mike calls Terry to tell him to expect Alex,
and to charge the coffee to Mike’s account. Is Mike liable for the
amount of the coffee purchase? Under which type of authority?
What if Mike had not called Terry? Would...
In each of the problems below, the ABC partnership has three equal partners A, B and...
In each of the problems below, the ABC partnership has three
equal partners A, B and C and the following balance sheet:
Assets
Partners’ Capital
A.B.
F.M.V.
A.B.
F.M.V.
Cash
$60,000
$60,000
A
$30,000 $45,000
Receivables
0
15,000
B
30,000
45,000
Inventory
15,000
30,000
C
30,000 45,000
Goodwill
15,000
30,000
Total
$90,000
135,000
$90,000 $135,000
Problem
A partner A dies on the first day of the current year and in an
agreement arranged...
A, B and C are equal partners in the ABC partnership which has the following balance...
A, B and C are equal partners in the ABC partnership which has
the following balance sheet:
Assets
Partners’ Capital
A.B.
F.M.V.
A.B. F.M.V.
Cash
$6,000
$6,000
A
$12,000 $18,000
A/R
0
9,000
B
12,000 18,000
Inventory
18,000
18,000
C
12,000 18,000
Land & Building
6,000 12,000
Equipment
6,000 9,000
$36,000
$54,000
$36,000 $54,000
The partnership distributes the $9,000 worth of accounts
receivable to A and $18,000 worth of inventory equally ($9,000
each) to B and...
Adam, Brian, Chris and Donald are taking goal shots in soccer. They take shots in the...
Adam, Brian, Chris and Donald are taking goal shots in soccer.
They take shots in the order, Adam, Brian, Chris, Donald, then
repeat. By going in this order they have an equal chance of making
a goal first. Donald makes a goal 50% of the time. What would be
the probability of Adam winning if he went last instead of
first?
The ABC partnership has three partners, A, B, and C, who each has an equal interest...
The ABC partnership has three partners, A, B, and C, who each
has an equal interest in partnership capital, profits, and losses.
To pay off expenses incurred by the partnership, C contributed
additional capital on October 31 of the current year. As a result
of C's contribution, the partners' interests in the partnership
capital, profits, and losses changed to 25% for A, 25% for B, and
50% for C. The partnership is an accrual method, calendar year
taxpayer.
a) If...
Brian owns and manages an apartment building. Danny and Brian sign a lease under which Danny...
Brian owns and manages an apartment building. Danny and Brian
sign a lease under which Danny agrees to rent an apartment for
$4,000 per month plus all utility costs associated with the
apartment. The lease is for a 3 year term, although Danny can
terminate the lease provided he gives three months’ notice. One
year into the term, Danny asks Brian to sign a modification to the
lease that indicates that the utility bills are to be split equally
between...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The
partners, who share profits and losses on a 60:40 basis,
respectively, wish to retire and have agreed to liquidate the
business. Liquidation expenses are estimated to be $5,000. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
50,000
Liabilities
$
40,000
Noncash assets
150,000
Alex, capital
90,000
Bess, capital
70,000
Total assets
$
200,000
Total liabilities and capital
$
200,000
Part A: Prepare...
1. If Tyler and Alex are trading partners, do their gains from trade depend on whether...
1. If Tyler and Alex are trading partners, do their gains from
trade depend on whether Tyler and Alex live in the same
country?
a. It is better if Tyler and Alex are both Americans.
b. It is better if one of them is American and one is not.
c. It is better if neither of them is American.
d. It doesn't matter in which country Tyler and Alex live.
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The
partners, who share profits and losses on a 60:40 basis,
respectively, wish to retire and have agreed to liquidate the
business. Liquidation expenses are estimated to be $9,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
59,000
Liabilities
$
44,500
Noncash assets
180,000
Alex, capital
108,000
Bess, capital
86,500
Total assets
$
239,000
Total liabilities and capital
$
239,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The
partners, who share profits and losses on a 60:40 basis,
respectively, wish to retire and have agreed to liquidate the
business. Liquidation expenses are estimated to be $9,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
71,000
Liabilities
$
61,000
Noncash assets
300,000
Alex, capital
180,000
Bess, capital
130,000
Total assets
$
371,000
Total liabilities and
capital
$
371,000
Part A: Prepare...
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