January 31 of the current year, Marcy contributed the following to a partnership for a 30% interest: AB   FMV Cash $ 60,000 $ 60,000 Accounts Receivable - 45,000 Inventory 30,000 50,000 Land 120,000 90,000   The partnership collected the receivables right away. The inventory was held as an investment by the partnership for two years, and then sold for $40,000. Marcy held the land as an investment but the partnership used it as a storage lot for its construction vehicles. The land was sold three years after the contribution for $80,000. a. What is the amount and character of gain on collection of the receivables?

Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used the available funds to acquire equipment costing $200,000 and to fund current operating expenses. The partnership agreement provides that depreciation will be allocated 80% to Bryan and 20% to Cody. All other items of income and loss will be allocated equally between the partners.Upon liquidation of the partnership, property will be distributed to the partners in accordance with their § 704(b) book capital account balances. Any partner with a negative capital account must contribute cash in the amount of the negative balance to restore the capital account to $0. In its first year, the partnership reported an ordinary loss (before depreciation) of $80,000 and depreciation expense of $36,000. In its second year, the partnership reported $40,000 of income from operations (before depreciation), and it reported depreciation expense of $57,600. a. Calculate the…

Munabhai

Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership