What gain or loss must be recognized on the distribution

Assignment Help Accounting Basics
Reference no: EM13324581

Current Distribution of Contributed Property. Andrew contributed investment land having an $18,000 basis and a $22,000 FMV along with $4,000 in money to the ABC Partnership when it was formed. Two years later, the partnership distributed the investment land Andrew had contributed to Bob, another partner. At the time of the distribution, the land had a $21,000 FMV, and Andrew and Bob's bases in their partnership interests were $21,000 FMV, and $30,000, respectively.

a.) What gain or loss must be recognized on the distribution, and who must recognize it?
b.) What are the bases for Andrew and Bob's interests in the partnership after the distribution?
c.)What is Bob's basis in the distributed land?

Reference no: EM13324581

Questions Cloud

Employees earnings and taxes : Employees Earnings and Taxes
Explain the solubility product constant for agcl : The solubility product constant for AgCl at 298 K is 1.82 × 10-10. Calculate E° for the process
Write a function word_counts : Write a function word_counts that parses the string s into words and returns an array (of arrays of the form [word, count]) representing the frequency of each word. Words are case-insensitive:
Find how far do you go during the whole trip : Starting from rest, you move with a constant acceleration of 2.1 m/s2 for 15.0 s and then move with an acceleration of -2.1 m/s2 for another 15.0 s. How far do you go during the whole trip
What gain or loss must be recognized on the distribution : What gain or loss must be recognized on the distribution, and who must recognize it?
Calculate the new volume of the gas : An ideal gas occupies a volume of 2.85 m3 at STP. The pressure of the gas in increased to 3.71 atm. Calculate the new volume of the gas
What impact did early white immigrants into tennessee : What impact did early white "immigrants" into Tennessee have on the imperial wars in North America prior to and during the American War of Independence?
Calculate the loss : Marge's auto, which is used for business purposes only, is totally destroyed by a fire. The fair market value of the auto was $8,000 at the time of the fire and the adjusted basis was $10,000. Calculate the loss, and determine whether it is a ..
Stock corporation-sole proprietorship-general partnership : In addition to the “stock corporation” define and describe two of the five following business entities. Sole Proprietorship, General Partnership, Limited Liability Company, and Limited Liability Partnership.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entries concerning stockholders equity

Markus Industries is authorized by its corporate charter to issue 10,000 shares of preferred stock with a 7% dividend rate and a par value of $10 per share, and 25,000 shares of common stock with a par value of $2 per share.

  Problem facing universal industries

How can process costing assist in addressing the problem facing Universal Industries?

  Increase affect operating profits

If Clark initiates a price increase for both product lines, how will customer demand change? How will the price increase affect operating profits

  Influence of equipment sales on td industries

TD Industries has a piece of equipment that has a cost of $400,000. The equipment has accumulated depreciation of $305,000.

  Determine the administrative costs calculated

Determine the administrative costs calculated to each operating department.

  Major expected costs-benefits for globalized businesses

With the globalization of corporate business and cross border security listings, the need for a common set of accounting standards to be applied worldwide emerged to the surface. Both the IASB and the FASB have taken steps towards this goal.

  Probability of amounts in collection envelopes

A local church is studying the amount of offerings in an envelope from their early Sunday mornings services. The church studied 500 envelopes and found the following:

  Compound interest

Compound interest is computed quarterly on $700 for seven years at 12 percent annual interest. The future value table is used by multiplying the $700 by which factor?

  Prime motivation behind the decisions

What was the prime motivation behind the decisions of Arthur Andersen's audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? Cite examples that reveal this motivation.

  Explanation direct materials direct labor manufacturing

Inventory with job cost sheets pertaining to unfinished work. (Hint: Use a single T-account for Work in Process Inventory.) Calculate each of the following, then post each to the T-account: (1) beginning balance, (2) direct materials, (3) direc..

  Compute the possible price

The most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price. The least O'Henry will take for the business is his endingcapital. Compute this amount. Under these condition..

  How would a balanced scorecard for chadwick

How would a balanced scorecard for Chadwick, Inc. differ from ones developed in its divisions, such as the Norwalk Pharmaceutical Division? Do you anticipate that there might be major conflicts between divisional scorecards and those of the corpor..

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