Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

In Year 1 Abbey of Tax Year Rules contributes $100,000 for a 25% interest in the ABC General Partnership. The Partnership obtains a $4.0 Million recourse loan to finance construction of a building.
In Year 2 Abbey's distributive share of the Partnership's losses is $200,000. In Year 2 the fair market value of the building declines to $1.6 Million and the Partnership does not make any payments of Principal on the loan.
In Year 3 the total the partnership losses in total (before allocation to the Partners) are $400,000.
(a) Assuming that, Abbey sells 50% of her 25% Interest to Olivia for $1000 in cash on June 30, Year 3 - what is the amount of Abbey's gain or loss on sale of that Interest? Her distributive share of Partnership loss for Year 3?
(b) Assuming, instead, that Abbey sells her entire 25% Interest to Olivia for $2000 in cash on June 30, year 3 - what is the amount of Abbey's gain or loss on sale of that Interest? Her distributive share of Partnership loss for year 3?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M945317

Have any Question? 


Related Questions in Accounting Basics

Practice questionsfour years ago your uncle mike set up a

Practice questions: Four years ago. your Uncle Mike set up a small manufacturing company. Aphrodite Showers. in Cyprus which manufactures shower screens. There are two models: the Paphos. which is the standard model. and ...

Financial information systems assessment myob

Financial Information Systems Assessment: MYOB assignment- Assessment overview This assignment is designed to introduce you to using double entry accounting using both a manual recording system and computer accounting so ...

Introductionnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp

Introduction                                                                                                       You are the professional accountant for The Sami Store owned by Mr. John Smith.  You have the task of pre ...

Descriptionbond valuation the pennington corporation issued

Description BOND VALUATION The Pennington Corporation issued a new series of bonds on January 1, 1990. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2019. Coupon payments ...

Practice questionsdescribe the treatment of administration

Practice questions: Describe the treatment of administration, selling and distribution overheads in calculating total unit cost.

Problem -a firm is considering the purchase of one machine

Problem - A firm is considering the purchase of ONE machine (i.e., A and B are mutually exclusive). Machine A will cost $40,000, generate sales of $20,000 per year for 5 years and have annual costs of $7,500.  Machine B ...

Accounting management and cost decisionsproduct costing

Accounting, Management, and Cost Decisions Product Costing Systems For the list of product manufacturers below, indicate whether a job-cost system (J) or a process cost system (P) would be most  appropriate. a. Chemicals ...

4 discussion questions - intermediate accounting 20please

4 Discussion questions - Intermediate Accounting 20 Please answer each of the 4 question compounds in at least 200 words., for an 800 word total paper. Please asnwer them individually. Thank you 1. What are the differenc ...

B bakery is a family owned firm with around 70 employees

B Bakery is a family owned firm with around 70 employees and sales revenue increased to more than $ 13.5 million during the past year. It has been in business for over 50 years and supplies bread and confectionary produc ...

Accounting questionsinternational accounting focuses on

Accounting Questions: International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment? W ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate