How much is recognized profit?how much is each partners, Ask an Expert

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Question :

Annie, Carla and Betty formed the ABC partnership. They contributed the subsequent assets.

Annie contributed cash of $20000 and services valued at $60000.

Betty contributed land with a basis of $50000 and FMV of $105000. Attached to the land is a mortgage of $40000 considering by the partnership. Betty received cash of $5000.

Carla contributed inventory with a basis of $10000 and FMV of $20000. She also contributed a building with a basis of $30000 and a FMV of $60000. Attached to the building is a mortgage of $20000 considered by the partnership.

Annie owns 40 percent of the partnership and Betty and Carla each own 30% of the partnership.

For each partner answer the subsequent;

How much is recognized profit?

How much is each partner's basis in the partnership?

What is the partnership's basis in the assets contributed?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9133810

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