Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

artner D is adamant that computers are more interesting than partnerships and decides he/she must bail out. To the delight of D a White Knight, Mr. F, agrees to buy his interest for the fair market value of $61,500. The balance sheet immediately before the sale of D's interest to F is as follows:

Balance Sheet
Inside 743(b) Basis
Basis (Partner E) FMV
Cash $ 50,000 $ - $ 50,000
Asset 1 7,500 - 1,000
Asset 2 12,000 - 2,000
Asset 3 20,000 531 30,000
Asset 4 40,000 797 60,000
Total assets $ 129,500 $ 1,328 $ 143,000

Liabilities $ 20,000 $ - $ 20,000
Capital -
A (10%) 10,950 - 12,300
E (10%) 10,950 1,328 12,300
C (30%) 32,850 - 36,900
D (50%) 54,750 - 61,500

Total liabilities and capital $ 129,500 $ 1,328 $ 143,000


1. Will there be a termination of the partnership upon sale of D's interest to the remaining partners?

2. Is there any gain or loss to be recognized by Partners A, E, C or F if there is a termination?

3. What are the bases of the assets deemed contributed to the new partnership?

4. What are the bases of the assets to the new partnership?

5. Are there any other partnership level tax consequences or issues as a result of the transferred interest?

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M942941

Have any Question? 


Related Questions in Accounting Basics

Article critiqueuse the csu online library to locate and

Article Critique Use the CSU Online Library to locate and review a scholarly article found in a peer reviewed journal related to: Unions, Labor Relations, or International Human Resources Management. There is a minimum r ...

Governmental accounting1 which of the following statements

GOVERNMENTAL ACCOUNTING 1. Which of the following statements is true about U.S. taxation of foreign subsidiaries? A)The U.S. does not tax income generated on subsidiaries incorporated in foreign countries. B)U.S. multina ...

Activity your accounting firm pennypacker amp vandelay llc

Activity: Your accounting firm, Pennypacker & Vandelay, LLC, has been asked by the Chairman of Harris Memorial Hospital and Harris Community Foundation to attend the annual board meeting to present the report of the Inde ...

Requirement 1 -it was early november 20x5 and the

REQUIREMENT 1 - It was early November 20X5, and the Hydromaint people requested a meeting with you and Tom Lockhart.  They wished to brief you on several 20X5 events and strategy changes. Nick Riley reported that the mai ...

1 which of the following statements about equity is

1. Which of the following statements about equity is correct? A. If equity is negative, debt exceeds total assets B. If equity is negative, total assets exceed debt C. If equity is negative, equity exceeds assets D. If e ...

1 what is the difference between a significant deficiency

1) What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls unde ...

In january 2013 mitzu co pays 2650000 for a tract of land

In January 2013, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $823,50 ...

1 identify an industry to focus on it is suggested that you

1) Identify an industry to focus on (It is suggested that you use an industry that is expanding rather than consolidating, but the choice is yours to make). Explain why you chose this industry and its environment. 2) Ide ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

Assignment intermediate accountinginstructionsbulluse the

Assignment: Intermediate Accounting Instructions: • Use the answer sheet provided. • For the multiple choice answers, use upper case letters. • Only submit you answer sheet in the Assignment Folder NLT No late examinatio ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro