None Carrie and Doug propose that Slicenhook distribute the following to Reed in complete liquidation of his partnershipinterest:CashInvestment stockTax BasisFMVEquipment-$200,000 cost, net of depreciation$ 501,000125,000114,200$ 501,000125,000360,000$ 740,200$ 986,000TotalSlicenhook has not purchased or sold any equipment since its original purchase just after formation.Comprehensive Problem 16-63 Part j (Algo)Required:-1. If Reed sells his interest, what is his after-tax cash? Assume his ordinary marginal tax rate is 35 percent and his capital gains tax rateis 15 percent.j-2. If Slicenhook distributes the assets proposed by Carrie and Doug in complete liquidation of Reed's partnership interest and Reedwere to immediately sell the distributed assets, what is his after-tax cash? Assume his marginal tax rate is 35 percent and his capitalgains rate is 15 percent.Complete this question by entering your answers in the tabs below.Required J1 Required J2If Reed sells his interest, what is his after-tax cash? Assume his ordinary marginal tax rate is 35 percent and his capital gainstax rate is 15 percent.Cash after tax< Required J1Required J2 >

Solution:-The inquiry is about the tax consequences for Reed when he sells his partnership stake in…

Carrie and Doug propose that Slicenhook distribute the following to Reed in complete liquidation of his partnership interest: Cash Investment stock Tax Basis $ 501,000 Equipment-$200,000 cost, net of depreciation 125,000 114,200 $740,200 Total FMV 501,000 125,000 360,000 $ 986,000 Slicenhook has not purchased or sold any equipment since its original purchase just after formation. Comprehensive Problem 16-63 Part j (Algo) Required: -1. If Reed sells his interest, what is his after-tax cash? Assume his ordinary marginal tax rate is 35 percent and his capital gains tax rate is 15 percent. -2. If Slicenhook distributes the assets proposed by Carrie and Doug in complete liquidation of Reed's partnership interest and Reed were to immediately sell the distributed assets, what is his after-tax cash? Assume his marginal tax rate is 35 percent and his capital gains rate is 15 percent.

Carrie and Doug propose that Slicenhook distribute the following to Reed in complete liquidation of his partnership interest: Cash Investment stock Tax Basis $ 501,000 Equipment-$200,000 cost, net of depreciation 125,000 114,200 $740,200 Total FMV 501,000 125,000 360,000 $ 986,000 Slicenhook has not purchased or sold any equipment since its original purchase just after formation. Comprehensive Problem 16-63 Part j (Algo) Required: -1. If Reed sells his interest, what is his after-tax cash? Assume his ordinary marginal tax rate is 35 percent and his capital gains tax rate is 15 percent. -2. If Slicenhook distributes the assets proposed by Carrie and Doug in complete liquidation of Reed's partnership interest and Reed were to immediately sell the distributed assets, what is his after-tax cash? Assume his marginal tax rate is 35 percent and his capital gains rate is 15 percent.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 27P

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