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Calculator Problem 11-35 (c) (LO. 3) Fern's basis in her partnership interest is $96,000. In a...
Calculator Problem 11-35 (c) (LO. 3) Fern's basis in her partnership interest is $96,000. In a proportionate distribution in liquidation of the partnership, Fern receives $14,000 cash and two parcels of land with bases of $11,000 and $25,000, respectively, to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $11,000 and $51,000 respectively. Round any division to two decimal places and use rounded amounts in subsequent computations.
a. Does Fern recognize any gain or loss on the distribution? No gain or loss is recognized
b. Fern's basis in the first property is $ , and her basis in the second property is $ .
c. If the land had been held as inventory, Fern would have allocated basis of $ and $ to the the inventory, and she would have realized and recognized a capital loss of $ .
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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1.
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Lidie has an outside basis in her partnership interest of
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a) Does Lidie recognize gain or loss on the distribution and if
so how much?
b) If there is a gain or loss what is the character?
c) If instead Lidie receives cash of $850 and receivables worth
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At December 31, the records of Kozmetsky Corporation provided
the following selected and incomplete data:
Common stock (par
$2; no changes during the current year).
Shares authorized,
5,000,000.
Shares
issued, ? ; issue price $8 per share.
Shares held as
treasury stock, 10,000 shares, cost $6 per share.
Net income for the
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Common Stock
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Dividends declared
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Retained...
Required information CC11-1 Accounting for Equity Financing [LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO...
Required information CC11-1 Accounting for Equity Financing [LO
11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5] [The following
information applies to the questions displayed below.]
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shares and 200,000 $2 par common shares. Outstanding shares include
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Recently the following transactions have taken
place. NGS issues 1,450 preferred shares for $12
a share. NGS repurchases 1,450...
Required information CC11-1 Accounting for Equity Financing [LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO...
Required information CC11-1 Accounting for Equity Financing [LO
11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5] [The following
information applies to the questions displayed below.]
Nicole has been financing Nicole’s Getaway Spa (NGS) using equity
financing. Currently NGS has authorized 100,000 no-par preferred
shares and 200,000 $2 par common shares. Outstanding shares include
59,000 preferred shares and 49,000 common shares.
Recently the following transactions have taken
place. NGS issues 1,450 preferred shares for $12
a share. NGS repurchases 1,450...
Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her adjusted basis...
Karli owns a 25% capital and profits
interest in the calendar-year KJDV Partnership. Her adjusted basis
for her partnership interest on July 1 of the current year is
$200,000. On that date, she receives a proportionate current
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Partnership’s Basis
FMV
Cash
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$150,000
Inventory
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60,000
Land (held for investment)
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100,000
a.
Calculate Karli’s recognized gain
or loss on
the distribution,
if any.
b.
Calculate Karli’s basis...
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