Golnesa sold her interest in a partnership for $27,000 cash when her outside basis was $9,000. She was relieved of her $39,000 share of partnership liabilities. What is Golnesa's recognized gain or loss from the sale of her partnership interest? $18,000 $27,000 $57,000 $66,000

Golnesa sold her interest in a partnership for $27,000 cash when her outside basis was $9,000. She was relieved of her $39,000 share of partnership liabilities. What is Golnesa's recognized gain or loss from the sale of her partnership interest? $18,000 $27,000 $57,000 $66,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Mr X.,Mr.Y. and Mr. Z went through major partnership losses that forced them to decide on…

A: Lets understand the basics. Partnership is an agreement between two or more persons to work togather…

Q: partnership of $18,000. Lou's basis in the land after the distribution is: a. $35,000 C. $25,000 b.…

A: Given :> Lou's Outside basis = $ 35,000> following distributions to Lou > Cash and…

Q: lector sold his interest in a partnership for 30,00 cash when his his 15,000 share of partnership…

A: The sale of a Partnership interest is generally treated as the sale of capital asset. As a result,…

Q: Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance…

A: In case of capital interest receipt it will be the gain or Loss will be recognized But where as for…

Q: Mindy sold her interest in a partnership for $20,000 cash when her outside basis was $5,000 she was…

A: The sale of interest in the partnership results in the capital gain or loss. And the gain or loss…

Q: Q purchases a partnership interest in the BC, LLC partnership for $10,000. Q's allocated share of…

A: Section 754 requires that each partner of partnership to determine their adjusted basis in order to…

Q: Question 1 Joan is a 30 percent partner in the OJT Partnership when she sells her entire interest to…

A: Partnership is an agreement between two or more parties to run a business and sharing profit. The…

Q: 1) Does Michelle recognize any gain or loss? If so how much?

A: Partnership firm is the type of the business carried on by the two or more individual with a mutual…

Q: Bob receives a proportionate current (nonliquidating) distribution when the basis of his Star…

A: A non-cash object can symbolize one of two things. Examples of negotiable instruments that are…

Q: Tax Basis FMV $ 50,000 $50,000 370,000 70,000 lities and capital -Mary al $420,000 $120,000 $140,000

A: A gain is an increase in the value of an asset, while a loss refers to the loss of value.

Q: None

A: Year 1:Initial at-risk amount: $20,000Loss from Beau Geste: $180,000Passive income from other…

Q: Bernardina's Adjusted Basis in her Partnership Interest in Cruz Partnership was $24,000. In Complete…

A: Partnership is based on the basis in the partnership and while liquidation the partners are paid on…

Q: *The partnership would recognize $6,000 of Sec. 1245 gain on this asset if it was sold.

A: Phyllis' adjusted basis in the partnership includes her share of the partnership's assets and…

Q: How much gain or loss does Viggo recognize on the contribution?

A: A partner is the person who has the share in the partnership business that share represents the…

Q: 1 Veatrice received $10,000 Cash and a Capital Asset with an Adjusted Basis of $6,000 and a Fair…

A: answer Veatrice received = $10,000 Capital assets = $6,000 Partnership interest = $20,000

Q: Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed…

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: None

A: Step 1:Net Income will be calculated as Total revenue- Total Expenses in Income Statement. Income…

Q: Larry recently invested $20,500 (tax basis) in purchasing a limited partnership interest in which he…

A: Any loss from the source of income can be set-off with the income the same source of income.For long…

Q: PROBLEM C and D are partners who share income and losses equally. C has an outside basis of $5,000…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Geoff sold his interest in a partnership for $67,000 cash when his outside basis includes his…

A: Gain on sale of partnership interest = Amount received in full and final settlement - Net Assets…

Q: Roscoe is insolvent and still owes $60,000 to his personal creditors. The personal creditors now…

A: In the event of a partner becoming insolvent, the partnership firms get dissolved. On dissolution,…

Q: partnership

A: Note 1] Partners are personally liable for the debts of a partnership. Therefore, this means that…

Q: None

A: Step 1:The allocation to parent and child would be calculated as under:ParticularsAmount $Profit…

Q: Retirement -Sale of interest to partnership (Asset Revaluation) Long-term partners, A, B, and C have…

A: The withdrawal partner can sell his share directly to other partners or the partnership firm. The…

Q: es ! Required information [The following information applies to the questions displayed below.]…

A: Investment in the limited partnership interestLimited partnership interest helps the investors the…

Q: John Smith and Mary Jones are in a partnership which provides consulting services in the bio - tech…

A: The partnership comes into existence when two or more persons agree to do the business and share…

Q: Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance…

A: The partnership is an business structure in which two or more persons share the ownership and…

Q: Prior to liquidating their partnership, Greer and Murphy had capital accounts of $70,000 and…

A: Before liquidation capital balance : Greer = $ 70000 Murphy = $ 30000 Assets sold = $ 25000 Ratio…

Q: $20,000. $60,000. $110,000. $120,000. $230,000.

A: In the goodwill method, the fair value of the firm is determined. The fair value is compared to the…

Q: In Complete Liquidation of her Partnership Interest, Rose receives $60,000 in Cash and Unrealized…

A: The liquidation of the partnership means the end of the partnership between the partners. In the…

Q: Veatrice received $10,000 Cash and a Capital Asset with an Adjusted Basis of $6,000 and a Fair…

A: Whenever a partnership firm is liquidated, then each partner receives amount of cash or assets.…

Q: Harry, Tony, and Liza run a partnership firm and share in the profits 1:3:2, respectively. In the…

A: The partnership firm is when two or more partners makes an agreement to start a firm together with…

Q: Anthony's basis in the WAM Partnership interest was $200,000 Just before he received a proportionate…

A: The profit or loss of partner of firm on liquidation will be difference between the basis of the…

Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…

A: It is an agreement between two or more parties to conduct the business and share the profits and…

Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…

A: Liquidation of Partnership - Liquidation of partnership is the process of selling all the assets…

Q: None

A: For the salary allowances, we simply copy the given as per the partners' agreement. We deduct the…

Q: Mpumi earned a salary of R325 000 in 2021.She holds 1/3 shares in a partnership. Allowable…

A: The assessment of taxable income includes identification of type of taxpayer and its…

Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…

A: It is an agreement between two or more parties to conduct the business and share the profits and…

Q: 3. Brielle received $30,000 in cash and an automobile with an adjusted basis and market value of…

A: Liquidation of Partner:A partnership liquidation entails the gathering of the business's remaining…

Q: The following information pertains to land contributed by Bea Dott for a 20% interest in a new…

A: Partnership Partnership is the scenario where two individuals mutually agrees to share their gains…

Q: Q1. Keith owns three partnership interests that are passive activities. He sells Partnership 3 and…

A: Partnership A partnership is a type of business where two or more people share ownership,…

Q: Required information [The following information applies to the questions displayed below.] Rubio…

A: Lets understand the basics.The income generated by a taxpayer from sources other than employment…

Q: Do not use ai

A: Calculation of recognized gain on the sale: ParticularsAmountOutside basis (A)$25,000Amount realized…

Question

$18,000

$27,000

$57,000

$66,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

INTRODUCTION

VIEW

ANSWER

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Wylie is a general partner in a service-providing partnership and receives cash of $290,300 in liquidation of his partnership interest, in which he has a basis of $217,725. The partnership owns no hot assets and continues in existence. After following all of the classification requirements of § 736, $195,953 of this amount is classified as a property payment [§ 736(b)] and $94,347 is classified as a guaranteed payment [§ 736(a)] (assume that this payment is for unstated partnership goodwill). As a result of the liquidation proceeds, how much will Wylie recognize as a capital gain or loss, and how much will be ordinary income? How much can the partnership likely deduct? Wylie recognizes a $ likely deduct $ and he recognizes $ capital loss which is a guaranteed payment as ordinary income. The partnership can
Provide answer this question
Partner Michael received a distribution of $80,000 cash from the ABC Partnership in complete liquidation of his partnership interest. If Michael's outside basis immediately before the distribution was $200,000, Michael's recognized gain or recognized loss is: $-0- recognized gain and $-0- recognized loss. $120,000 recognized gain. $120,000 recognized loss. $80,000 recognized gain.
pvn.2
13
Give me correct answer with explanation.j
A6
Answer please
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,500. At the date the partnership ceases operations, the balance sheet is as follows: $ 65,000 240,000 $ 47,500 168,000 89,500 Cash Liabilities Noncash assets Alex, capital Bess, capital Total liabilities and capital Total assets $ 305,000 $ 305,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $28,500 of the partnership's liabilities. c. Sold noncash assets for $257,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,000. f. Paid $5,100 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final…
Please do not give solution in image format thanku
In 2020, Fred invested $155,000 in a general partnership. Fred's interest is not considered to be a passive activity. If his share of the partnership losses is $108,500 in 2020 and $75,950 in 2021, how much can he deduct in each year? Fred can deduct $fill in the blank 1 in 2020 and $fill in the blank 2 in 2021.