CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Chapter 2, Problem 22P
To determine
Identify the related parties.
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Amy, Andy, and Anya own 10%, 25%, and
65%, respectively, in the FFF Partnership.
Amy sells securities for their $45,000 FMV
to the partnership. Review the following
independent situations:
a. Amy's basis in the securities is $65,000. The three partners are siblings.
b. Amy's basis in the securities is $85,000. Amy is unrelated to the other partner:
c. Amy's basis in the securities is $20,000. Amy and Anya are sisters. The
partnership will hold the securities as an investment.
d. What are the tax consequences in Part a if the partnership subsequently sells
the securities to an unrelated third party for $73,000? For $56,000? For
$39,000?
Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the partnership
is $40,000. Her basis in the S-Corp is 23,250. Tamara is the sole owner of the S-Corp.
a. Assume the partnership gives a current distribution to Tamara of $30,000 cash and land worth
$20,000 (basis of $15,000). Determine the following:
1. Basis of Tamara's Partnership Interest_
2. Basis of Land to Tamara
b. Independent of part (a), assume the partnership gives a liquidating distribution to Tamara of $30,000
cash and two pieces of equipment. Equipment 1 is worth 3,000 (basis: 3,000) and equipment two is
worth 2,000 (basis: 0). Compute the following:
1. Basis of Tamara's Partnership Interest
2. Basis of equipment 1 to Tama
3. Basis of equipment 2 to Tamara
c. Tamara received a cash distribution of $25,500 from her S-Corp. Corporate-level accounts at the end
of the year were as follows.
$9,000
13,500
AAA
OAA
Accumulated E & P
900
Fill out the following table to determine how Tamara's…
Mickey, Don, and Derek are equal (1/3rd) partners in River Avenue, LLC. Mickey’s outside basis in his partnership interest is $250. River Avenue’s balance sheet (include FMV) is below. What are the tax consequences to Mickey if he sells his interest to Roger for $500 cash + debt assumption? How much of the gain/loss is ordinary and how much is capital? *Assume that River Avenue originally purchased the machinery for $120 (i.e., accumulated depreciation = $65), and that $120 of depreciation has been taken on the building since its acquisition five years ago*
Assets
FMV
Book
Tax
Debt
Book
Tax
Cash
240
240
240
Recourse
150
150
A/R
60
75
75
Inventory
150
90
90
Capital
Machinery
100
55
55
Mickey
200
200
Building
500
200
200
Don
200
200
Stock
300
90
90
Derek
200
200
Goodwill
300
0
0
Chapter 2 Solutions
CONCEPTS IN FED.TAX.,2020-W/ACCESS
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - What is an arms-length transaction? What is its...Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Sheila, a single taxpayer, is a retired computer...Ch. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Chelsea, who is single, purchases land for...Ch. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - Prob. 45PCh. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48PCh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Determine the taxpayers adjusted basis in each of...Ch. 2 - Prob. 62PCh. 2 - Prob. 63IIPCh. 2 - Prob. 64IIPCh. 2 - Prob. 65IIPCh. 2 - Jerry and his wife, Joanie, own a successful...Ch. 2 - Prob. 67IIPCh. 2 - Prob. 68IIPCh. 2 - Prob. 69IIPCh. 2 - Prob. 70IIPCh. 2 - Prob. 71IIPCh. 2 - Prob. 79DCCh. 2 - Prob. 80DCCh. 2 - Prob. 81TPC
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