Tax Basis FMV $ 50,000 $50,000 370,000 70,000 lities and capital -Mary al $420,000 $120,000 $140,000
Tax Basis FMV $ 50,000 $50,000 370,000 70,000 lities and capital -Mary al $420,000 $120,000 $140,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 37P
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Elaine pays $40,000 cash for Martha's one-third interest in the Lakewood Partnership. Just prior to the sale, Martha's
basis in Lakewood is $140,000. Lakewood reports the following balance sheet:
Tax
Basis
FMV
Assets
Cash
Land
Totals
Liabilities and capital
Capital
Totals
-Mary
-Martha
-Margaret
$ 50,000 $50,000
370,000 70,000
$420,000 $120,000
$140,000
140,000
140,000
$420,000
Assume the land had been purchased several years ago and the partnership does not have a §754 election in place.
a-1. What is the amount of Martha's recognized gain or loss on the sale?
Amount of recognized Gain or loss
$
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Required information
[The following information applies to the questions displayed below.]
Elaine pays $40,000 cash for Martha's one-third interest in the Lakewood Partnership. Just prior to the sale, Martha's
basis in Lakewood is $140,000. Lakewood reports the following balance sheet:
Tax
Basis
FMV
Assets
Cash
Land
Totals
Liabilities and capital
Capital
Totals
-Mary
-Martha
-Margaret
$ 50,000 $50,000
370,000 70,000
$420,000 $120,000
$140,000
140,000
140,000
$420,000
Assume the land had been purchased several years ago and the partnership does not have a §754 election in place.
a-1. What is the amount of Martha's recognized gain or loss on the sale?
Amount of recognized Gain or loss
$
0
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