How is the tax gain allocated between the partners

Assignment Help Accounting Basics
Reference no: EM131643077

Question - Gary and Joseph are forming the GJ Partnership. Gary contributes $500,000 cash, and Joseph contributes non-depreciable property (adjusted basis of $200,000 and a fair market value of $550,000). The property is subject to a $50,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes. Gary and Joseph share in all partnership profits equally, except for any pre-contribution gain, which must be allocated according to the statutory rules for built-in gain allocations.

(I) What is Joseph's adjusted tax basis for his partnership interest immediately after the partnership is formed?

(II) What is the partnership's adjusted basis for the property contributed by Justin?

(III) If the partnership sells the property contributed by Joseph for $600,000, how is the tax gain allocated between the partners?

Reference no: EM131643077

Questions Cloud

What is the definition of a causal mechanism : What is the definition of a causal mechanism and how does it work with the independent and dependent variable?
Discuss any one area of propaganda : Discuss any one area of propaganda (posters, radio, film, flyers) and compare and contrast one Allied Nation and one Axis Nation.
Explain and define a health savings account : Explain and define a Health Savings Account. Is it good or bad idea for health care? Does it expand or limit your options as a health care consumer?
An example of a political protest that mattered : You need a 700 word response about an example of a political protest that "mattered" and one that did not.
How is the tax gain allocated between the partners : If the partnership sells the property contributed by Joseph for $600,000, how is the tax gain allocated between the partners
The belief of conflictionist karl marx on their children : How would a the average American push the belief of conflictionist Karl Marx on their children?
Why is it important to consider the background of students : Why is it important to consider the background of the students and possible assessments used when designing a lesson? How does this lead to student achievement?
Describe the unethical behavior : Describe the unethical behavior, if any, in each example and describe how it could impact the reliability of the resulting data.
Summarize the benefits of e-filing : Summarize the benefits of e-filing from the perspectives of both the taxpayer and the government

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of adoption credit they can claim

jesus and mindy whose modified AGI is 200,000 adopted a girl from Miami florida and incurred a total of 18,000 in qualified adoption expenses what is the amount of adoption credit they can claim?

  Foley common stock account

Foley Manufacturing Corporation purchased 3,000 shares of its own previously issued $10 par common stock for $69,000. As a result of this event, a) Foley's common stock account decreased $30,000.

  What are guaranteed investment contracts

What are guaranteed investment contracts (GICs), and what role do they play in 401(k) plans? What investment vehicles might be suitable for funding a Keogh.

  What is the projects standard deviation of npv e assume

heywood diagnostic enterprises is evaluating a project with the following net cash flows and probabilities year prob0.2

  What is the present value of a 700 annuity payment over

1.a deposit of 350 earns the following interest rates a 8 percent in the first year b 7 percent in the second year and

  Compute the amount of phantom profit

Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.

  An employee earns 6050 per month working for an employer

an employee earns 6050 per month working for an employer. the fica tax rate for social security is 6.2 and the fica tax

  How much should crosby increase selling price to wholesaler

If alternative 3 is chosen based on net CM and the actual sales do not meet expectations by 20% how much should Crosby increase the selling price to the wholesaler to make $32,000 in CM?

  Calculate the number of units in ending inventory

Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. Compare the Income from..

  What four elements make up throughput time

What four elements make up throughput time? What elements of throughput time are value-added and what elements are non-value-added?

  Use the following information to prepare a multistep

Use the following information to prepare a multistep income statement and a classified balance sheet for Webb Equipment Co. for 2014.

  Robertson corporations inventory balance was 22000 at the

robertson corporations inventory balance was 22000 at the beginning of the year and 20000 at the end. the inventory

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd