Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 14AP
a.
To determine
Compute each partner’s initial basis in its
b.
To determine
Compute each partner’s initial basis in its partnership interest, assuming that Corporation AB is a general partner and Corporation YZ is a limited partner.
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AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $510,000 cash, and YZ
contributed land ($510,000 FMV and $440,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its
formation, ABYZ borrowed $255,000 from a local bank. The debt is recourse (unsecured by any specific partnership asset).
Required:
a. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners.
b. Compute each partner's initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited partner.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute each partner's initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited
partner.
AB's initial basis
YZ's initial basis
Amount
Jalapeño Corporation and Habanero Corporation formed a partnership to construct a restaurant. Jalapeño contributed $567,000 cash,
and Habanero contributed land ($567,000 FMV and $497,000 basis) in exchange for a 50 percent interest in Pepper Partnership.
Immediately after its formation, Pepper Partnership borrowed $283,500 from a local bank. The debt is recourse (unsecured by any
specific partnership asset).
Required:
a. Compute each partner's initial basis in its partnership interest, assuming that both Jalapeño and Habanero are general partners.
b. Compute each partner's initial basis in its partnership interest, assuming that Jalapeño is a general partner, and Habanero is a limited
partner.
On May 1, 2022, AA and BB formed a partnership with each contributing the
following assets:
Partner AA:
Cash, P300,000
Machinery and equipment, P250,000
Furniture and fixtures, P100,000
Partner BB:
Cash, P700,000
Machinery and equipment, P750,000
Building, P2,250,000
The building is subject to a mortgage loan of P800,000, which will not be assumed by
the partnership.
What is the capital balance of partner BB upon formation?
Chapter 10 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 10 - Can a sole proprietorship be described as a...Ch. 10 - Mrs. Liu owns a business as a sole proprietor....Ch. 10 - This year, Mr. Pitts sole proprietorship generated...Ch. 10 - This year, Firm Q, a cash basis taxpayer, remitted...Ch. 10 - Prob. 5QPDCh. 10 - Define the tax base for the self-employment tax....Ch. 10 - Prob. 7QPDCh. 10 - Prob. 8QPDCh. 10 - Prob. 9QPDCh. 10 - Prob. 10QPD
Ch. 10 - Prob. 11QPDCh. 10 - Prob. 12QPDCh. 10 - Prob. 13QPDCh. 10 - Prob. 14QPDCh. 10 - Prob. 2APCh. 10 - Prob. 3APCh. 10 - Prob. 4APCh. 10 - Colin, a self-employed consultant, uses a room of...Ch. 10 - Prob. 6APCh. 10 - Prob. 7APCh. 10 - For 2019, Ms. Deming earned wages totaling...Ch. 10 - Calculate the total Social Security and Medicare...Ch. 10 - Prob. 11APCh. 10 - Prob. 12APCh. 10 - Jane is a self-employed attorney. This year, her...Ch. 10 - Prob. 14APCh. 10 - Prob. 15APCh. 10 - Amit is a limited partner in Reynolds Partnership....Ch. 10 - Kari is a limited partner in Lizard Partnership....Ch. 10 - Rochelle is a limited partner in Megawatt...Ch. 10 - Prob. 19APCh. 10 - Prob. 20APCh. 10 - Prob. 21APCh. 10 - Prob. 23APCh. 10 - AV Inc. is a member of an LLC. This year, AV...Ch. 10 - Prob. 25APCh. 10 - Prob. 26APCh. 10 - Prob. 27APCh. 10 - Prob. 28APCh. 10 - Prob. 29APCh. 10 - Refer to the facts in the preceding problem. BLS...Ch. 10 - Refer to the facts in part (c) of the preceding...Ch. 10 - For each of the following situations, indicate...Ch. 10 - a. If Video Associates is a partnership, and her...Ch. 10 - Prob. 34APCh. 10 - Prob. 1IRPCh. 10 - Javier is a full-time employee of B Inc. and...Ch. 10 - Mr. and Mrs. Chou file a joint income tax return....Ch. 10 - Travis is a professional writer who maintains his...Ch. 10 - Prob. 5IRPCh. 10 - Prob. 6IRPCh. 10 - Prob. 7IRPCh. 10 - Prob. 8IRPCh. 10 - Prob. 9IRPCh. 10 - Paulas Schedule K-1 from an LLC reported a 12,000...Ch. 10 - Marcus, a cash basis individual, is a general...Ch. 10 - Prob. 12IRPCh. 10 - Mr. and Mrs. West are the only shareholders in WW,...Ch. 10 - Prob. 14IRPCh. 10 - Prob. 15IRPCh. 10 - Prob. 16IRPCh. 10 - Prob. 17IRPCh. 10 - Prob. 1RPCh. 10 - Prob. 2RPCh. 10 - Herold had been a calendar year S corporation...Ch. 10 - Prob. 4RPCh. 10 - Mr. and Mrs. Janus operate a restaurant business...Ch. 10 - Prob. 2TPCCh. 10 - Prob. 3TPCCh. 10 - Marla recently inherited 50,000 and is considering...
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