User Account

All Pages

What is the partnership''s basis in the property contributed

Assignment Help Financial Accounting
Reference no: EM132315803

Question

Larry and Jessica form the L&J Partnership. Larry contributes property with an adjusted basis of $70,000, a fair market value of $200,000, and subject to a liability of $80,000 in exchange for a 40 percent interest in the partnership. Jessica receives a 60 percent interest in the partnership in exchange for services performed for the partnership, valued at $10,000, and cash of $170,000.

a. What amount of gain or loss must Larry recognize as a result of his transfer of the property to the partnership?

b. What is Larry's basis in his partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?

c. What is the partnership's basis in the property contributed by Larry?

d. What is Jessica's basis (after considering Larry's liability assumed by the partnership) in her partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?

e. How much income does Jessica recognize on the exchange?

Reference no: EM132315803

Questions Cloud

Provide arguments against embassy in Tel Aviv : As part of this position paper you have to provide arguments for and against both keeping the embassy in Tel Aviv and moving it to Jerusalem
Create a cloud based simulating environment : Evaluate existing and new functionalities to address business problems - Prepare a document to report your activities using text and multimedia
Debate over whether or not vitamin and mineral supplements : There is lot of debate over whether or not vitamin and mineral supplements are necessary. Based on what you have learned when is it necessary to take supplement
The correct adjusting entry at december-31-2019 is : On October 1, 2019, Paige Turner Publishing received $61,800 in cash for subscriptions covering one year, recording the entry as a debit to Cash.
What is the partnership''s basis in the property contributed : What is Larry's basis in his partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?
Why are these determinations important to firefighters : Why are these determinations important to firefighters? What are four water systems that may be utilized in Craver City? Define adequacy. Define reliability.
How will the change affect our economic and social behavior : Review the topics of each of the chapters we have covered in the class. Do a little reading and research. Choose three technological and social changes.
List three approaches to message authentication : List three approaches to message authentication. What properties must a hash function have to be useful for message authentication?
What amount should appear in the allowance for doubtful : Timmons Company had a January 1, balance in its Allowance for Doubtful Accounts of $7,000 for the current year. The following transactions and events affected.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How to manage the administrative and operational activities

Centcom estimates that under its management of Britel, economies of scale benefits will be realized, and, thus, will reduce Britel's operating costs.

  Variance that may occur in debbie budget

Debbie is reviewing her monthly financial data. Discuss one potential variance that may occur in Debbie budget?

  Determine the gross profit from sales

Determine the gross profit from sales for the period and determine the ending inventory cost - Determine the total sales and the total cost of merchandise sold for the period.

  Capital budgeting models

Which actual outcomes are most subject to deviation from expected outcomes?

  Parts-and-labor warranty on all merchandise it sells

The Wolf Appliance Co. provides a 120-day parts-and-labor warranty on all merchandise it sells.  Show the effects of these transactions on the financial statements using a horizontal statements model like the example shown here. Use a + to indicate i..

  What basis will d have in deli corporation stock

A corporation has income of $62,000 from operations and a long term capital loss of $5,000 and long term capital gain of $4,000.   What is the corporation's taxable income?

  Calculate ivory corporation deduction for given amount

Assuming that the bonuses are paid to the shareholders on February 1, 2012, calculate Ivory Corporation’s 2011 deduction for the above amounts.

  Prepare the entries for the issuance

A $200,000, 4-year bond paying interest of 10% payable semiannually is issued on January 1, 19X1, at 104. Prepare the entries for the issuance, the interest and amortization for the first year, and there payment at maturity.

  Computation of break-even-point

Computation of break-even-point and contribution margin ratio - Breakeven Point, Cost Structure, and Target Sales

  What is the total annual cost of the accounting program

The university sustaining cost levels is $20,000,000, which includes basic building costs, admin salaries like president and admissions offices. Committed costs at the university level increase in the long run, by $20,000,000 for each new school adde..

  Sales variance analysis is useful

Sales Variance analysis is useful for:

  Design substantive procedures for detecting irregularities

Design substantive procedures for detecting inventory irregularities. Design substantive procedures for detecting irregularities in fixed assets.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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