FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ff.127.

 

Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS
Partnership at year-end is as follows:
Land
Inventory
Hary
Scott
Banin
#12
60
66.
Assets
Cash
Land
99
99
4290
Fair
Razket
Value
#72
At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered Kari's
interest will not be subject to a substantial risk of forfeiture, and the costs for the type of services she provided are
typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal
Consequently, the only tax consequences for the year are those relating to the admission of Karl to the partnership, (Leave
no answer blank. Enter zero if applicable. Do not round Intermediate calculations.)
132
48
#252
$126
126
$252
c. Prepare a balance sheet of the partnership immediately after Kari's admission showing the partners' tax capital accounts and capital
accounts stated at fair market value.
Tax Basis
MS Partnership
70401FMV
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Transcribed Image Text:Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Land Inventory Hary Scott Banin #12 60 66. Assets Cash Land 99 99 4290 Fair Razket Value #72 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered Kari's interest will not be subject to a substantial risk of forfeiture, and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal Consequently, the only tax consequences for the year are those relating to the admission of Karl to the partnership, (Leave no answer blank. Enter zero if applicable. Do not round Intermediate calculations.) 132 48 #252 $126 126 $252 c. Prepare a balance sheet of the partnership immediately after Kari's admission showing the partners' tax capital accounts and capital accounts stated at fair market value. Tax Basis MS Partnership 70401FMV
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