Question
In: Accounting
22. Rhianna is a calendar-year taxpayer who owns a 40% capital and profits interest in the...
22. Rhianna is a calendar-year taxpayer who owns a 40% capital and profits interest in the RM Partnership. Magdalena sells the remaining 60% capital and profits interest to Syed on November 30. The partnership year-end is May 31 as permitted by the IRS for business purpose reasons. The RM Partnership
A) terminates on September 30.
B) terminates on October 31.
C) terminates on December 31.
D) does not terminate.
Solutions
ekkarill92 answered 7 months agoRelated Solutions
Jay owns a 25% interest in the capital and profits of Grey Company (a calendar year partnership).
Jay owns a 25% interest in the capital and profits of Grey Company (a calendar year partnership). For tax year 2017, the partnership earned revenue of $800,000 and had operating expenses of $400,000. During the year, Jay withdrew from the partnership a total of $80,000. He also invested an additional $50,000 in the partnership. For 2017, Jay’s gross income from the partnership is:
a.
$70,000.
b.
$100,000.
c.
$125,000.
d.
$215,000.
e.
None of the above.
____ 26. Ron,...
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
(nonliquidating) distribution of the following assets.
Partnership’s Basis
FMV
Cash
$150,000
$150,000
Inventory
30,000
60,000
Land (held for investment)
70,000
100,000
a.
Calculate Karli’s recognized gain
or loss on
the distribution,
if any.
b.
Calculate Karli’s basis...
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
(nonliquidating) distribution of the following assets.
Partnership’s Basis
FMV
Cash
$150,000
$150,000
Inventory
30,000
60,000
Land (held for investment)
70,000
100,000
a.
Calculate Karli’s recognized gain
or loss on
the distribution,
if any.
b.
Calculate Karli’s basis...
Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis...
Josh has a 25% capital and profits interest in the calendar-year
GDJ Partnership. His adjusted basis for his partnership interest on
October 15 of the current year is $300,000. On that date, the
partnership makes a proportionate liquidating distribution of the
following assets to Josh.
Partnership’s Basis in Asset
Asset’s Fair Market Value
Cash
Inventory
$ 70,000
120,000
$ 70,000
150,000
a.
Determine Josh’s basis in the inventory and his recognized gain
or loss on the liquidating distribution, if any....
Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer...
Ralph owns a building that he is trying to lease. Ralph is a
calendar-year, cash-method taxpayer and is trying to evaluate the
tax consequences of three different lease arrangements. Under lease
1, the building rents for $700 per month, payable on the first of
the next month, and the tenant must make a $700 security deposit
that is refunded at the end of the lease. Under lease 2, the
building rents for $7,700 per year, payable at the time the...
Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer...
Ralph owns a building that he is trying to lease. Ralph is a
calendar-year, cash-method taxpayer and is trying to evaluate the
tax consequences of three different lease arrangements. Under lease
1, the building rents for $680 per month, payable on the first of
the next month, and the tenant must make a $680 security deposit
that is refunded at the end of the lease. Under lease 2, the
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Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next...
Trevor is a single individual who is a cash-method,
calendar-year taxpayer. For each of the next two years (year 1 and
year 2), Trevor expects to report AGI of $80,000, contribute $8,000
to charity, and pay $2,800 in state income taxes.
A. Assume that Trevor combines his anticipated charitable
contributions for the next two years and makes the combined
contribution in December of year 1. Estimate Trevor’s taxable
income for each of the next two years using the 2018 amounts...
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next...
Trevor is a single
individual who is a cash-method, calendar-year taxpayer. For each
of the next two years (year 1 and year 2), Trevor expects to report
AGI of $104,000, contribute $8,450 to charity, and pay $3,400 in
state income taxes.
Required:
Estimate Trevor’s taxable income for year 1 and year 2 using
the 2019 amounts for the standard deduction for both years.
Now assume that Trevor combines his anticipated charitable
contributions for the next two years and makes the...
Pink Corporation is a calendar year taxpayer. Pete owns one-third (100 shares) of Pink stock. His...
Pink Corporation is a calendar year taxpayer. Pete owns
one-third (100 shares) of Pink stock. His basis in the stock is $
25000. Cheryl owns two-thirds (200 shares) of Pink stock. Her
basis in the stock is $ 40000. On June 10 of the current year,
Pink distributes $ 40000 to Pete and $ 80000 to Cheryl.
Determine the tax consequences of the cash distributions to Pete
and Cheryl in each of the following independent situations:
a.
Current E&P of...
Oliver, a calendar-year taxpayer, owns 50 shares of Copper Corporation stock, which was purchased two years...
Oliver, a calendar-year taxpayer, owns 50 shares of Copper
Corporation stock, which was purchased two years ago for $30,000.
Oliver sells all 50 shares on December 31, of the current year
(2019), for $20,000 and on January 15 (2020), of the following
year, purchases 25 shares of Copper Corporation stock. Oliver's
recognized loss will be (LABEL AND SHOW ALL WORK WITH
CALCULATIONS)
A) $0
B) $5,000.
C) $7,500.
D) $10,000.
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