When Bruno's
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Exercise 11-13 (
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- Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $185,000, she receives a liquidating distribution of $46,250 cash and a proportionate share of inventory having a partnership basis of $64,750 and a fair market value of $74,000. The distribution results in a liquidation of both the partnership and her interest. a. How much is Magdalena's basis in the inventory received? $ b. What is the amount of any gain or loss recognized on the liquidation? of $ She has a recognized on the liquidation.17. TP had an adjusted basis in her LLC interest of $50,000 immediately before she received a current proportionate distribution of $20,000 cash, unrealized accounts receivable with a basis of 0 and a FMV of $10,000, and real property with a basis of $40,000 and a FMV of $50,000. Her basis in the distributed real property is: a. 0 b. $30,000 c. $20,000 d. $40,000 e. None of the abovehen Bruno's basis in his LLC interest is $283,800, he receives cash of $113,520, a proportionate share of inventory, and land in a distribution that liquidates both the LLC and his entire LLC interest. The inventory has a basis to the LLC of $70,950 and a fair market value of $90,816. The land's basis is $127,710, and the fair market value is $113,520. How much gain or loss does Bruno recognize, and what is his basis in the inventory and land received in the distribution? If an amount is zero, enter "0". Bruno recognizes (a gain, loss, neither a gain or loss) of $_____________. Bruno's basis in the inventory is $_______________ and his basis in the land is $___________________.
- LO.4, 7 In December 2019, Carl Corporation sold land it held as an investment. The corporation received 50,000 in 2019 and a note payable (with adequate interest) for 150,000 to be paid in 2021. Carl Corporations cost of the land was 80,000. The corporation has a 90,000 net capital loss carryover that will expire in 2019. Should Carl Corporation report the sale in 2019 or use the installment method to report the income as payments are received?When Bruno's basis in his LLC interest is $228,600, he receives cash of $91,440, a proportionate share of inventory, and land in a distribution that liquidates both the LLC and his entire LLC interest. The inventory has a basis to the LLC of $57,150 and a fair market value of $73,152. The land's basis is $102,870, and the fair market value is $91,440. How much gain or loss does Bruno recognize, and what is his basis in the inventory and land received in the distribution? If an amount is zero, enter "0". Bruno recognizes . Bruno's basis in the inventory is $____________ and his basis in the land is $______________5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 5096 of the stock. How would this change your answer? () Suppose instead that in addition to transferring the services contract, A transfers cash of just 1 How would this change your answer?
- 5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties?16. TP received a proportionate liquidating distribution of his LLC interest. His outside basis was $50,000. He received $20,000 cash; and land with a basis and FMV of $20,000. As a result of this distribution TP has which of the following results? a. Recognized loss of $10,000 and land basis of $20,000 b. Realized loss of $10,000; recognized loss of $10,000 c. 0 realized loss; 0 recognized loss and a land basis of $20,000 d. Recognized loss of 0 and a land basis of $30,000 e. Realized and recognized loss of $30,000A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of $100 and is subject to a mortgage of S40. A) What are the consequences to each of the parties?
- 8. Mary has an outside basis in her LLC membership interest of $100,000. In a liquidating proportionate distribution, the LLC distributes to her cash of $60,000, and land with an inside basis of $50,000 and a FMV of $40,000. Her taxable gain and basis in the land is: a. 0/$40,000 b. $10,000/$40,000 c. $10,000/$50,000 d. 0/$50,000 e. None of the AboveViktor exchanges stock (adjusted basis $19,000, FMV $26,800) and real estate (adjusted basis $19,000, FMV $46,000) held for investment for other real estate to be held for investment. The real estate acquired in the exchange has a suggested FMV of $70,200. Required: a. What are Viktor's realized and recognized gain or loss? b. What is the basis of the acquired real estate? a a b. Realized gain No gain or loss Realized gain Realized loss Recognized gain Amount5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 50% of the stock. How would this change your answer?
