The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had bases of $12,100 and $5,100, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest $1231 gain On the last day of the year, the partnership distributed $5,100 each to Amir and Francesca. $ 712,000 531,000 198,000 5,000 5,000 9,000 Required: a. What outside basis do Amir and Francesca have in their partnership Interests at the end of the year? b. How much of their losses are currently not deductible by Amir and Francesca because of the tax-basis limitation? c. To what extent does the passive activity loss limitation apply in restricting their deductible losses for the year? Note: For all the requirements, negative amounts should be entered with a minus sign. Leave no answers blank. Enter zero applicable.

Last year, Cara contributed investment land with a FMV of $24,000 and basis of $18,000 to the CDE Partnership. CDE made no distributions during the last year, and Cara's basis in her partnership interest on December 31 of last year was $28,000. On January 1 of this year, the partnership distributed cash of $30,000 to Cara and distributed the land contributed by Cara to another partner, David. On the distribution date, the land had a $27,000 FMV. Assume the CDE Partnership reported no profit or loss this year. What are the tax consequences of the distributions to the partners? NEED DAVID'S BASIS

Katherine invested $80,000 this year to purchase a 30% interest in the KLM Partnership. The partnership reported $200,000 of net income from operations, a $2,000 short-term capital loss, and a $10,000 charitable In addition, the partnership distributed $20,000 to Katherine and $10,000 each to partners Lauren and Missy. Assuming the partnership has no beginning or ending liabilities, what is Katherine's basis in her partnership interest at the end of the year?

Jerry and Sherry own and operate a partnership. Jerry's capital balance is $50,000 and Sherry's is $55,000. Jerry and Sherry decided to admit a new partner, Allison, to their partnership. By the terms of their partnership agreement, Jerry and Sherry share income/ loss equally, Allison intends to contribute $40,000 to receive a Twenty-five percent interest in the partnership. Required: a. Revalue the partnership assets b. Determine the total equity of the partnership after the new partner is admitted c. Determine the new partner's share of the total equity d. Determine the bonus resulting from Allison's equity of her contribution e. Make journal entries to rccord Allison's admission to the partnership

Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $108,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,000 and was appraised at $180,000. The land was also encumbered with a $72,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6,300 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:  Sales revenue $ 470,000 Cost of goods sold 450,000 Operating expenses 55,000 Long-term capital gains 2,100 §1231 gains 900 Charitable contributions 300 Municipal bond interest 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) 3,000   a. Compute the adjusted basis of each partner’s interest in the partnership…

The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had bases of $11,200 and $3,800, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest $1231 gain $ 675,000 508,000 180,000 3,400 2,800 6,800 On the last day of the year, the partnership distributed $3,800 each to Amir and Francesca. Comprehensive Problem 20-81 Part 1 (Algo) Required: a. What outside basis do Amir and Francesca have in their partnership interests at the end of the year? b. How much of their losses are currently not deductible…

Angie and Cole operate a successful accounting business as a general partnership. Their partnership agreement specifies that they would share equally in the profits and losses of the business. During the last fiscal year, Angie received regular bi-weekly cheques in the amount of $2,000, for a total of $52,000. At the end of the year, she received an additional cash distribution of $30,000. Over the course of the last fiscal year, the business realized a profit of $152,000. How much income does Angie have to report for tax purposes from the partnership? O a) $52,000 O b) $76,000 O c) $82,000 • d) $158,000

At the beginning of the current​ year, Ignatio and Bundy formed the IB Partnership by transferring cash and property to the partnership in exchange for a partnership​ interest, with each having a​ 50% interest.​ Specifically, Ignatio transferred property having a $65,000 ​FMV, a $38,000 adjusted​ basis, and subject to a $7,000 ​liability, which the partnership assumed. Bundy contributed $20,000 cash to the partnership. The partnership also borrowed $32,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current​ year, the partnership earned $22,000 of net ordinary income and reinvested this amount in new property. a. What is the​ partnership's and each​ partner's gain or loss recognized on the formation of the​ partnership? b. What is each​ partner's basis in his or her partnership interest at the end of the current​ year? c. For the​ partnership, prepare a tax and book balance sheet at the end…

Vikram

Ray and Carin are partners in an accounting firm. The partners have entered into an arm's length agreement requiring Ray to purchase Carin's partnership interest from Carin's estate if she dies before Ray. The price is set at 120% of the book value of Carin's partnership interest at the time of her death. Ray purchased an insurance policy on Carin's life to fund this agreement. After Ray had paid $45,000 in premiums, Carin was killed in an automobile accident and Ray collected $800,000 of life insurance proceeds. Ray used the life insurance proceeds to purchase Carin's partnership interest. Question Content Area a.  What amount should Ray include in his gross income from receiving the life insurance proceeds?     Question Content Area b.  The insurance company paid Ray $16,000 interest on the life insurance proceeds during the period Carin's estate was in administration. During this period, Ray had left the insurance proceeds with the insurance company. Is this…