John has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000 cash, accounts receivable ($12,000 A/B, $16,000 FMV) and land ($3,000 A/B, $8,000 FMV) The basis of his partnership interest following the distribution is

John has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000 cash, accounts receivable ($12,000 A/B, $16,000 FMV) and land ($3,000 A/B, $8,000 FMV) The basis of his partnership interest following the distribution is

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 8BCRQ

See similar textbooks

Related questions

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

A: Direct manufacturing costs is the total cost incurred directly in the manufacturing of product…

Q: y of Amarillo is authorized to issue $6,600,000, 3 percent reg te highway within city limits. The…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct…

A: Lets understand the basics.Direct material price variance is a variance between the rate at which…

Q: The East Company manufactures several different products. Unit costs associated with Product ORD210…

A: The costs incurred for the production are classified as product and period costs. The period costs…

Q: Discuss the audit implications, if any, of the unwillingness of Mr Bold to participate in the cheque…

A: Audit is overall review of the procedures, documents so as to state whether they are abide by the…

Q: -Your answer is partially correct. Make a 5-year trend analysis, using 2016 as the base year, of (1)…

A: Trend analysis is a useful technique to compare the trends with the different years. This analysis…

Q: Oriole Corporation had the following amounts, all at retail: Beginning inventory $3900 Purchase…

A: A company considers the current retail prices of every item in its inventory when valuing its…

Q: Revenue Recognition: Explain the concept of revenue recognition in accounting. Provide examples of…

A: Revenue Recognition in Accounting:Revenue recognition is a fundamental accounting principle that…

Q: On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc.…

A: In a joint venture, the rewards and risks are shared. Each participant contributes resources, and…

Q: The Western Division of Claremont Company had net operating Income of $137,000 and average Invested…

A: Both ROI and RI are important metrics in business. ROI is used to evaluate the efficiency of an…

Q: cessary journal entries to record any transactions associated with treas Mock 88

A: Treasury stock is the common stock held by the company that is not available to the public. It is…

Q: Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials…

A: The ratio of an organization's administrative expenses to another input or sales volume is known as…

Q: If the average product of labor is equal to 10 units when 5 units of labor are used, then total…

A: The average product of labor gives a general measure of output per worker, and it is calculated by…

Q: As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been asked to…

A: As per the Tax Laws, you can either claim standard deduction or itemized deduction. Standard…

Q: Presented below are data on three promissory notes. Determine the missing amounts. (Round answers…

A: The borrower can obtain money through a promissory note that they might not have readily available.…

Q: accounts at March 31: Accounts receivable Inventory Prepaid expenses Accounts payable Salaries…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: QUESTION 15 Ruiz, Inc. has had some turnover in its parts inventory area. As a result, some…

A: Working capital= Current asset-current liabilitiesCurrent assets are cash and cash equivalents and…

Q: Use the information below to prepare (a) departmental income statements and (b) the departmental…

A: The income statement is one of the important financial statement of the business. It tells about the…

Q: oods sold ative costs ng costs bonuses for bad debts intenance costs nformation Quarter $1,500,00…

A: Part 1 Q1Q2Q3Q4Sales $ 15,00,000 $ 18,00,000 $ 21,00,000 $ 24,00,000Cost of…

Q: Suppose a company has an investment that costs $3,500 and requires a 20 percent return. The project…

A: The point at which cost and income are equal and there is neither profit nor loss.BEP (in units) =…

Q: The following account balances at the beginning of January were selected from the general ledger of…

A: Cost of goods sold means the cost which is incurred to produce the finished goods including direct…

Q: please help me explain the relationships of 5 financial elements (A, L, E, Exp, Rev) using…

A: The accounting equation is the foundation of double-entry bookkeeping, and it states that assets (A)…

Q: Krall Company recently had a computer malfunction and lost a portion of its accounting records. The…

A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…

Q: Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases…

A: The horizontal analysis is performed to compare the results of two different years. The increase or…

Q: a. Equipment with a book value of $65,300 and an original cost of $133,000 was sold for $51,300. b.…

A: Cash from investing activities includes inflow or outflow related to purchase and sale of long term…

Q: 1. 2 3. The income statement of Crane Company is presented here. 5. Crane Company Income Statement…

A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…

Q: Shirley Processing. Incorporated (SPI) makes adhesive tape. The following information on the…

A: WEIGHTED AVERAGE METHOD :—Under this method, equivalent units are calculated by adding equivalent…

Q: The semi-annual interest expense to be recorded using the straight line method of interest…

A: Face value of bonds$46,000Less: Issued Price ($46,000 * 98%)$45,080Discount on bonds payable…

Q: Marzan Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the…

A: The lower of cost or market (LCM) method is an inventory valuation approach where the recorded cost…

Q: Whispering Factory provides a 2-year warranty with one of its products which was first sold in 2025.…

A: Warranty expenseIt is the cost that a company anticipates incurring for the defective product…

Q: Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating…

A: Every company prepares a budget for its operations every year. Budgeting is important to formulate…

Q: Calculate the value of A. Enter Favourable variances as a positive number and Unfavourable variances…

A: Flexible budget is prepared for various levels within the relevant range. In Flexible budget…

Q: Entries for discounted note payable Instructions Chart of Accounts Journal Instructions A business…

A: Notes Payable is an instrument issued by the borrower to the lender. It acts like a promissory note…

Q: Mann Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2021, the…

A: Stock compensationStock compensation is one of the methods of companies to reward employees with the…

Q: Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as…

A: The process of combining the financial statements of a parent business and its subsidiaries to…

Q: Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses…

A: Contribution margin per unit is the difference between the sales and variable cost but when there is…

Q: Kingbird Corporation traded a used truck (cost $28,400, accumulated depreciation $25,560) for a…

A: The assets exchanged transactions are based on different assumptions such as exchange may have…

Q: Last year Ellen received $75,000 in compensation from her employer who also agreed to pay her Social…

A: Answer:- Social security taxes meaning:- The Social Security Administration provides retirement,…

Q: Statement of stockholders' equity The stockholders' equity T accounts of I-Cards Inc. for the year…

A: Statement of stockholders' equity is one of the financial statements that shows change in amount of…

Q: June 1 June 11 Junes 20 Balance. 400 units @ $10 Purchased 900 units @ $12 Purchased 600 units @ $13…

A: FIFO means First In First OutUnder FIFO method materials received first in the stores are issued…

Q: Bridgeport Company uses a flexible budget for manufacturing overhead based on direct labor hours.…

A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…

Q: Assuming she sells both assets in December of year 1 (the current year), what effect will the sales…

A: The effect of an asset, which has been sold during the year, have an impact over the tax liability…

Q: Vaughn Manufacturing expects a direct materials cost of $4 per unit for 300000 units (a total of…

A: The main purpose of Standard costing is to compare your actual performance with these standards and…

Q: Calgate Company had the following shares outstanding and retained earnings at the end of the current…

A: Cumulative Preference Share: When a corporation goes into liquidation, cumulative preference shares…

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

A: Realized gain refers to the gain that is occurred on the sale of any investment. It is the excess of…

Q: Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Toblerone Chocolate Company produces high quality chocolates and candles for sales throughout the…

A: PRODUCTION BUDGETProduction Budget is a Forecast of the Production for the Budgeted Period of an…

Q: Practice Question 14 Lonsdale Ltd. manufactures two models of product: basic and Intermediate. The…

A: Sales mix variance refers to the difference between the actual sales mix of multiple products and…

Q: On December 31, 20X1, the Notes Receivable account at Eliassen Materials Corporation had a balance…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: If Jimmy is terminated before he is fully vested in an employer-sponsored plan, Jimmy may not get to…

A: Many employer-sponsored retirement plans have vesting periods, during which employees gradually earn…

Question

John has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000 cash, accounts receivable
($12,000 A/B. $16.000 FMV) and land ($3,000 A/B, $8.000 FMV) The basis of his partnership interest following the distribution is
Selected Answer: Ⓒa. 50
Answers:
0.50
b. $5,000
c. $1,000
d. ($4,000)
D

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

Step 1: Step 1

VIEW

Step 2: Step 2

VIEW

Solution

VIEW

Step by step

Solved in 3 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

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the above
Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.