1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense Distribution to Mary 30,000 20,000 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.

1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense Distribution to Mary 30,000 20,000 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 8BCRQ

See similar textbooks

Similar questions

8a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership: Basis Fair Market Value Harry: Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally: Equipment used in a business 200,000 150,000 Totals $ 200,000 $ 150,000 How much gain or loss will Harry recognize on the contribution?
This year Sheila's income from her partnership is $225.000 Sheila's business deductions from the partnership total $440,000. Sheila also earns $170,000 of W-2 income and has $65,000 of investment income What is the amount of the excess business loss that is carried forward as a NOL? A.$0 B. $150.000 C. $200.000 D. $216.000
Alex, Barnes, Caleb and Davis have the following partnership business:Assets Liabilities and equitiesCash $55,000 Liabilities $40,000Current assets 30,000 Alex, capital 60,000Land 205,000 Barnes, capital 70,000Building and Equip’t 110,000 Caleb, capital 90,000 Davis, capital 140,000Total assets $400,000 Total Liab. and Eq’s $400,000The partners share profits and losses equally. Provide the partners’ ending capital balances in each of the followingindependent situations. a. Eldridge is added to the partnership after contributing $90,000 to the business. No goodwill or bonus is recorded. b. Eldridge contributes $100,000 in cash to the business and receives a 20% interest in the partnership. Eldridge’s $100,000…
H6. Ellen, Denny, John, and Michelle are equal partners in a partnership that has the following assets: (i) $10,000 of cash, (ii) inventory with a tax basis of $10,000 and a value of $50,000, and (iii) land with a tax basis of $100,000 and a value of $60,000. Each partner has an outside basis of $30,000. Assuming the partnership bas a §754 election in effect, what are the tax consequences if Ellen sells her interest to Pickens for $30,000? Please provide the answer with detailed explanation. Thanks!
I3I Jerri and Joani formed the JJ Partnership on January 1, 2020, by combining the separate assets of their respective proprietorships. Information relating to their assets and liabilities are as follows: Jerri's assets Joani's assets Вook Market Book Market Value P100,000 P100,000 P95,000 P95,000 39,000 60,000 50,000 80,000 25,000 18,000 Value Value Value Cash Net accounts receivable Inventory Land 42,000 69,000 77,000 28,000 31,000 72,000 85,000 85,000 55,000 Buildings Accumulated depreciation Accounts payable 75,000 90,000 30,000 25,000 25,000 75,000 18,000 Prepare the Statement of Financial Position for JJ Partnership on January 4 2020, immediately after the partnership entries are prepared.
Items 34 and 35 are based on the following information: On January 2,2010, Jason and Melissa formed a partnership by contributing the following assets: Cash Accounts Receivable Merchandise Inventory Land Building Jason P ? 80,000 100,000 Melissa 34. On January 2, 2010, Melissa, Capital amounts to a. P440,000 b. P600,000 P 380,000 240,000 The Land invested by Melissa is subject to mortgage loan of P160,000, which is to be assumed by the partnership. The accounts receivable invested by Jayson are believed to be only 90% collectible. d. P1,040,000 35. Assuming that Jayson is to contribute enough cash to bring his capital equal to that of Melissa, required cash contribution of Jayson is a. P268,000 b. P420,000 d. P600,000 c. P760,000 c. P440,000
- Harry and Sally formed the evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership: Basis Fair Market Value Harry: Cash $30,000 $30,000 Land $100,000 $120,000 Totals $130,000 $150,000 Sally: Equipment used in business $200,000 $150,000 Totals $200,000 $150,000 How much gain or loss will Harry recognize on the contribution? How much gain or loss will Sally recognize on the contribution? How could the transaction be structured in a different way…
7a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership: Basis Fair Market Value Harry: Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally: Equipment used in a business 200,000 150,000 Totals $ 200,000 $ 150,000 Prepare a tax basis balance sheet for the Evergreen partnership showing the tax capital accounts for the partners. Assets Cash Equipment Land Totals Capital Sally-Capital Harry-Capital Totals
1. Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investments at 15%; salary allowances of $24,000 and $20,000, respectively; and the remainder to be divided equally. How much of the net income of $90,000 is allocated to Seth? a.$47,750 b.$45,000 c.$42,750 d.$43,250 2. Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $42,000 is allocated to Seth? a.$32,000 b.$23,000 c.$20,000 d.$0 3. Tucker and Titus are partners who share income in the ratio of 3:1 (3/4 to Tucker and 1/4 to Titus). Their capital…
Ma1. Nina and Sue form an equal partnership during the current year. They agree to share profits and losses equally. Nina contributes cash of $100,000 and Sue contributes property (A/B of $80,000, FMV of $100,000) subject to a recourse debt of $50,000 which the partnership will assume. a. Is any gain or loss recognized on the formation of the partnership? b. What basis do the partners have in their partnership interest after the formation?
Required information Paul and Wayne equally own PW Partnership. Paul's basis was $30,000 and Wayne's basis was $22,000 at the beginning of the year. PW Partnership had the following income and expense items: Sales $ 330,000 Cost of goods sold 220,000 Guaranteed payment to Paul 40,000 Rent expense 24,000 Depreciation 33,000 Interest expense 4,000 Tax-exempt income 3,000 Health insurance premiums for Paul 3,600 Health insurance premiums for Wayne 3,600 PW Partnership's non-financial information is as follows: Name: PW Partnership Address: 5 Furniture Street, Anywhere, NC 28777 EIN: 56-1234567 Date Partnership Began: 01/01/10 Business Code: 442110 Principal Business Activity: Retail Principal Product or Service: Furniture Follows the Cash Method of Accounting b. Calculate Paul’s basis in his partnership interest.
Ann, Bill, Carl and Dawn have the following partnership business: Assets Liabilities and equities Cash $55,000 Liabilities $40,000 Current assets 30,000 Ann, capital Bill, capital Carl, capital 60,000 Land 205,000 110,000 70,000 90,000 140,000 Building and Equip't Dawn, capital Total Liab. and Eq's Total assets $400,000 $400,000 The partners share profits and losses equally. Provide the partners' ending capital balances in each of the following independent situations. a. Elmore is added to the partnership after contributing $80,000 to the business. No goodwill or bonus is recorded. b. Elmore contributes $100,000 in cash to the business and receives a 20% interest in the partnership. Elmore's $100,000 investment is considered 20% of the new business's value, so goodwill may need to be recorded. (Elmore's capital balance will be exactly $100,000.)