5. C and D are equal partners in the CD partnership. C starts the year with...

5. C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $300 in his partnership interest while D starts the year with an adjusted basis of $600. The partnership distributes cash of $200 and inventory, adjusted basis $450 fair market value $500, to C and cash of $200 and land, adjusted basis $300, fair market value $700, subject to a liability of $200, to D. The partnership continues operation thereafter. What consequences to the parties?

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C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $300 in his partnership interest while D starts the year with an adjusted basis

ekkarill92 answered 1 year ago

C and D are equal partners in the CD partnership. C starts the year with an...

C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $300 in his partnership interest while D starts the year with an adjusted basis of $600. The partnership distributes cash of $200 and inventory, adjusted basis $450 fair market value $500, to C and cash of $200 and land, adjusted basis $300, fair market value $700, subject to a liability of $200, to D. The partnership continues operation thereafter. What consequences...

4. C and D are equal partners in the CD partnership. C starts the year with...

4. C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $400 in the partnership while D starts the year with an adjusted basis of $700. (a) The partnership distributes cash of$ 500 to C and land, adjusted basis $300 fair market value $500 to D. The partnership thereafter continues operations. What consequences? (b) Same as (a) except that the land had an adjusted basis of $800 (fair market value still...

C and D, both individuals, are 60% and 40% partners, respectively, in the CD partnership. C...

C and D, both individuals, are 60% and 40% partners, respectively, in the CD partnership. C starts the year with an adjusted basis of 600 in his partnership interest, while D has an initial adjusted basis of 400 in her partnership interest. (a) For the year, the partnership has sales of 300, cost of goods sold of 230, T-bill interest income of 30, a long-term capital gain of 150, charitable contributions of 30 and payroll costs of 60. How do...

A, B and C are equal partners in the ABC partnership which has the following balance...

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A and B, both calendar year noncorporate taxpayers, are equal partners in the AB partnership, which had the following income and expenses during its (business purpose) taxable year that ended on July 31 of the current year: Gross receipts from inventory sales $100,000 Cost of goods sold $30,000 Salaries paid to nonpartners $10,000 Depreciation $12,000 Advertising expenses $8,000 Interest expense paid on investment margin account maintained by AB (see § 163(d)) $6,000 Gain from the sale of machine held for...

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A and B are equal partners in a personal services partnership. Each partner acquired her partnership interest for cash several years ago. None of the partnership’s asset sis Section 704(c) property. The partnership has the following balances sheet: Assets Liabilities and Partnerships' Capital A.B. FMV cash 13,000 13,000 Liabilities 2,000 capital assets Capital A.B. FMV collectibles 1,000 3,000 A 10,000 15,000 Other 6,000 2,000 B 10,000 15,000 Subtotal ...

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