The Balance Sheet of the equal Delana Partnership on August 31, 2023 is as follows: Cash (Adjusted Basis-$240,000; Fair Market Value-$240,000 Unrealized Receivables (Adjusted Basis- $-0; Fair Market Value - $120,000); Capital Assets (Adjusted Basis-$330,000; Fair Market Value $510,000) (Total Assets: (Adjusted Basis-$570,000; Fair Market Value $870,000); Notes Payable (Adjusted Basis $180,000; Fair Market Value-$180,000); Capital Accounts: Rochelle Capital (Adjusted Basis- $130,000; Fair Market Value - $230,000); Kendra Capital (Adjusted Basis-$130,000; Fair Market Value $230,000 Toya Capital (Adjusted Basis- $130,000; Fair Market Value - $230,000) (Total Liabilities And Equity (Capital)- (Adjusted Basis-$570,000; Fair Market Value $870,000). Rochelle sells her interest in the Partnership to someone outside of the Partnership for Cash of $230,000 and the assumption of her share of the Partnership Liabilities. The amount of Capital Gain recognized by Rochelle for the sale of her Partnership Interest is: $100,000. $230,000. O $ 40,000. O$ 60,000.

The Balance Sheet of the equal Delana Partnership on August 31, 2023 is as follows: Cash (Adjusted Basis-$240,000; Fair Market Value-$240,000 Unrealized Receivables (Adjusted Basis- $-0; Fair Market Value - $120,000); Capital Assets (Adjusted Basis-$330,000; Fair Market Value $510,000) (Total Assets: (Adjusted Basis-$570,000; Fair Market Value $870,000); Notes Payable (Adjusted Basis $180,000; Fair Market Value-$180,000); Capital Accounts: Rochelle Capital (Adjusted Basis- $130,000; Fair Market Value - $230,000); Kendra Capital (Adjusted Basis-$130,000; Fair Market Value $230,000 Toya Capital (Adjusted Basis- $130,000; Fair Market Value - $230,000) (Total Liabilities And Equity (Capital)- (Adjusted Basis-$570,000; Fair Market Value $870,000). Rochelle sells her interest in the Partnership to someone outside of the Partnership for Cash of $230,000 and the assumption of her share of the Partnership Liabilities. The amount of Capital Gain recognized by Rochelle for the sale of her Partnership Interest is: $100,000. $230,000. O $ 40,000. O$ 60,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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