Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Myself and three of my acquaintances, Ben, Charlie, and Diana have entered into ABCD partnership in January of 2015. I contributed cash of $5,000 in exchange for 25% interest in the partnership. Ben contributed property with a fair market value of $5,000 a basis of $4,000 and liabilities of $800 in exchange for 25% interest. Charlie contributed debt instruments valued at $5,000 with built-in losses of $2,000 in exchange for 25% interest. And finally Diana, who is a lawyer, contributed services valued at $5,000 in exchange for 25% interest. Immediately after the formation of the partnership ABCD sold the newly-contributed debt instruments to an outside third party for $3,000 and recognized the $2,000 loss. At the same time Charlie sold his 25% interest to me for $5,000. I need to know the basis of the partnership interest for each of the four partners. I also need to know any gains or losses that need to be recognized by the partners or the partnership in regards to each of these contributions. Over the year the partnership made $20,000 in ordinary income and $3,000 LTCG (from the above mentioned securities). I need to know which forms I will need to file for my 2015 partnership tax return, and then how much income will flow to each individual partner. Please let me know if you need any further information.
(Ignore income taxes in this problem.) Assume you can invest money at a 14% rate of return. How much money must be invested now in order to be able to withdraw $5,000 from this investment at the end of each year for 8 years, the first withdrawal occu..
As long as the firm's choice of securities does not change the cash flows generated by its assets, the capital structure decision will not change the total value of the firm or the amount of capital it can raise. If securities are fairly priced, then..
Two firms, U and L, are identical except for their capital structure. Both own a single perpetual asset that will have annual after tax-free cash flows of $25million in a boom and $5million in a slump. What is the value of firm U in $millions? What i..
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $150,000 if credit is extended to these new customers. Of the new accounts receivable generated, 5% will prove to be..
With celebrity bonds, celebrities raise money by issuing bonds to investors. The royaties from the sales of music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue w..
You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. Without considering the additional educational years or the..
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$25,000 1 21,000 2 17,000 3 6,000 Required: (a) At a required return of 13 percent, what is the NPV for this project? (b) At a required return of 41 percent, what ..
Given the following marginal tax schedule, what would be the tax on $70,000 of taxable income?
A ski chalet in Aspen now costs $250,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 10 years before Barbara and Phil retire from successful investment banking careers. How large an equal annual end-of-y..
Which of the following would increase the expected current value of a stock valued using the constant growth model of stock valuation?
How much would the return for US oil have to increase before it would be beneficial to increase the investment in this stock? How much would the return for Huber Steel have to decrease before it would be beneficial to reduce the investment in this st..
Dana reports Inventory of $2,596,867, Cash of $1,228,073, COGS of $8,086,302, and Accounts Receivable of $2,359,372. Its benchmark peer group turns its inventory 7.7 times a year. What would Dana's new inventory level be if it experienced the same nu..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd