Required information[The following information applies to the questions displayed below.]Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron andDeanne each contributed $110,000, and Keon transferred an acre of undeveloped land to the partnership. The land had atax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 nonrecoursemortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end ofthe first year, Blue Bell made a $7,000 principal payment on the mortgage. For the first year of operations, the partnershiprecords disclosed the following information:Sales revenueCost of goods soldOperating expensesLong-term capital gains§1231 gainsCharitable contributionsMunicipal bond interestSalary paid as a guaranteed payment to Deanne (notincluded in expenses)Required:a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.b.List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual incometax returns that include the results of the partnership's first year of operations.d. What are the partners' adjusted bases in their partnership interests at the end of the first year of operations?Complete this question by entering your answers in the tabs below.Required ARequired B Required DAdjusted basis$ 470,000410,00070,0002,400900300300Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.KeonAaron3,000Deanne

Required: a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership. b.List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership's first year of operations. d. What are the partners' adjusted bases in their partnership interests at the end of the first year of operations?

Required: a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership. b.List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership's first year of operations. d. What are the partners' adjusted bases in their partnership interests at the end of the first year of operations?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 25CE

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Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $124,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $56,000 and was appraised at $180,000. The land was also encumbered with a $56,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,200 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: $ 480,000 470,000 70,000 1,500 600 Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions 300 Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) 300 3,000 c. Using the…
. Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. Blue Bell made a $7,000 principal payment on the mortgage at the end of the first year. For the first year of operations, the partnership records disclosed the following information: Sales revenue $ 470,000 Cost of goods sold $ 410,000 Operating expenses $ 70,000 Long-term capital gains $ 2,400 §1231 gains $ 900 Charitable contributions $ 300 Municipal bond interest $ 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 3,000 What is the Qualified nonrecourse debt for Deanne and why.
Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $140,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $74,500 and was appraised at $210,000. The land was also encumbered with a $74,500 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $10,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) Required: a. Compute the adjusted basis of each partner's…
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $108,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,000 and was appraised at $180,000. The land was also encumbered with a $72,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6,300 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue $ 470,000 Cost of goods sold 450,000 Operating expenses 55,000 Long-term capital gains 2,100 §1231 gains 900 Charitable contributions 300 Municipal bond interest 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) 3,000 a. Compute the adjusted basis of each partner’s interest in the partnership…
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $108,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,000 and was appraised at $180,000. The land was also encumbered with a $72,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6,300 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue $ 470,000 Cost of goods sold 450,000 Operating expenses 55,000 Long-term capital gains 2,100 §1231 gains 900 Charitable contributions 300 Municipal bond interest 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) 3,000 Compute the adjusted basis of each partner’s interest in the partnership…
Required information [The following information applies to the questions displayed below.] Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $10,000 cash. Matt receives $3,000 cash and a parcel of land with a $7,000 fair market value and a $4,000 basis to the partnership. Matcoy has no debt or hot assets. e. What is Matt's ending basis in his partnership interest? Ending basis
Required Information (The following information applies to the questions displayed below.) Asron, Deonne, snd Keon formed the Blue Bell General Portnership et the beginning of the current yeor. Asron and Deanne each contributed $112,000 end Keon transferred en scre of undeveloped lend to the partnership. The land hod a tax basis of $68,000 and was apprsised st $180,000. The land was olso encumbered with e $68,000 nonrecourse mortgoge for which no one was personally liable. All three pertners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6.600 principal payment on the mortgage. For the first yesr of operations, the partnership records disclosed the following information: Sales revenue $ 488, eee Cost of goods sold Operating expenses Long-tern capital gains 51211 gains Charitable contributions 468, 020 43, 020 1, 58e 6ee Municipal bond interest Salary paid as a guaranteed paynent to Dcanne (not included in expenses) 3,0e0 a. Compute the…
tax forms . Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) $470,000 410,000 70,000 2,400 900 300 300 3,000 a) Compute the adjusted basis of each partner's interest in the partnership immediately after…
Three years ago, Mario joined the MN Partnership by contributing land with a $10,000 basis and an $18,000 FMV. On January 15 of the current year, Mario has a basis in his partnership interest of $20,000, and none of his precontribution gain has been recognized. On January 15, Mario receives a current distribution of a property other than the contributed land with a $15,000 basis and a $23,000 FMV. Read the requirements. ..... Requirement a. Does Mario recognize any gain or loss on the distribution? Mario on the distribution. Requirements a. Does Mario recognize any gain or loss on the distribution? b. What is Mario's basis in his partnership interest after the distribution? c. What is the partnership's basis in the land Mario contributed after Mario receives this distribution? Print Done