What is the effect of each of these items on ws basis

Assignment Help Accounting Basics
Reference no: EM13138689

1. W is a partner in the equal WXYZ partnership. At the beginning of the year, his basis in his partnership interest is $40,000. On Feb. 1, W takes a draw against earnings of $30,000. On June 1, the partnership pays off $60,000 of debt. On Sept. 1, W gets a distribution of cash of $30,000 that is not a draw against earnings. The partnership's income from the year is $200,000. What is the effect of each of these items on W's basis?

2. Partner A performs $5,000 of contract-type Code Sec. 707(a) services for the ABC partnership in December of 2009, but does not get paid until January of 2010. A and ABC are both calendar-year taxpayers, but A is on the cash basis and ABC is on the accrual basis. When will A recognize it, and when will ABC deduct it?

Reference no: EM13138689

Questions Cloud

Design an rc-low pass filter : Design an RC-Low Pass Filter with cutoff frequency at fc=0.5GHz and plot its frequency response and design a parallel resonance circuit with resonance frequency of 30kHz and bandwidth of 20kHz and plot its frequency response.
Discuss the major types of fraud : Discuss the major types of fraud you might find in auditing the financial statements of a client.What conditions are generally present, how should the auditor assess the risk or fraud, what steps if any should the auditor take when he suspects fra..
Find the heat of combustion : Find the heat of combustion in kJ/g for each gas. These values are valid at 25°C, where the water produced by the reaction is in the liquid state.
Cordia has a number of choices : Cordia has a number of choices that will have an influence on how its operating structure develops over time. These choices are fundamentally concerned with the way in which the Cordia board and its management team collectively perceive the underlyin..
What is the effect of each of these items on ws basis : Partner A performs $5,000 of contract-type Code Sec. 707(a) services for the ABC partnership in December of 2009, but does not get paid until January of 2010. A and ABC are both calendar-year taxpayers, but A is on the cash basis and ABC is on the..
Presume the information portion of a packet contains : Suppose the information portion of a packet contains 10 bytes consisting of the 8- bit unsigned binary ASCII representation of string "Link Layer".
Probability that greater than twenty households get income : random sample of 120 households, what is the probability that greater than 20 households but less than 35 households receive retirement income?
How much in dollars does timberland have to sale : Assume the Company requires income of $14,000, how much in dollars does Timberland have to sale to achieve $14,000 profit?
A time varying capacitor is characterized by the charge : A time varying capacitor is characterized by the charge- voltage equation q(t) = C(t)v(t)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Shift from gaap to ifrs

Over the next few years companies will be shifting away form GAAP to IFRS (International Financial Reporting Standards). GAAP was a rules based approach to accounting where IFRS is a more principals based approach to accounting.

  Determine the total deduction for the stolen items

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowners insurance policy paid Jacob $7,000 for the stolen computer, Jacobs employer did not reimburse Jacob for any of the remainder of his loses. Jacob..

  Liability insurance-expected after tax earnings

Suppose that the Lai Jean Co. expects before tax earnings of 5 million this coming year, assuming no liability losses. However, there is a 2 percent chance that Lai will lose a $10 million lawsuit during the year.

  Recording journal entry-wage accrual and reversal

August 31 falls on a Thursday. On Friday, September 1, the part-time employee John J. Jones was paid $250 or $50 per day for a five-day work week which ended that Friday.

  Compute the overhead controllable variance

Earth Company expects to operate at 86% of its productive capacity of 52,000 units per month. At this planned level, the company expects to use 26,832 standard hours of direct labor.

  Determine the variable utilities rate per machine hour

Lewis Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows.

  Problem related to passive loss deduction

In the current year, Galaxy Corporation, a closely held C corporation that is not a personal service corporation, has $80,000 of passive losses, $60,000 of active business income, and $10,000 of portfolio income. How much of the passive loss may G..

  Debate how this affects the accounting profession as a whole

The IRS allows CPAs, lawyers, and Enrolled Agents (EA) to prepare taxes for compensation. Debate how this affects the accounting profession as a whole, and how you think this change will impact the accuracy and cost of tax preparation.

  Debit memo for an nsf check

Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry is required in the company's accounts?

  Accounts receivable and cash sales

Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of January?

  Net present value of the proposed project

The company requires a minimum pretax return of 13% on all investment projects. The net present value of the proposed project is closest to:

  Method for recording bad debts expense

Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $25,000 at the end of the year. If the balance of the Allowance for Doubtful Accounts is $8,000 debit before adjustment; what is the a..

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