Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Partner 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.:- M944925

Have any Question? 


Related Questions in Accounting Basics

Cvp analysis in service companies please respond to one of

"CVP Analysis in Service Companies" Please respond to one of the following: Option 1 Imagine that you are the cost accounting manager and the director of your present or past organization. Management wants your opinion o ...

Accounting questionwhat are the advantages to the

Accounting Question: What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantages to the acquiring entity? ...

Accounting for gov amp not for profit1 explain in 2-4

ACCOUNTING FOR GOV & NOT FOR PROFIT 1. Explain in 2-4 sentences the difference between government Agency funds and Fiduciary funds. 2. What information is or is not required to be reported in the RSI for pension plans un ...

On october 1 little bobby corporations stockholders equity

On October 1, Little Bobby Corporation's stockholders' equity is as follows. Common stock, $5 par value                                       $400,000 Paid-in capital in excess of par- common stock             25,000 Ret ...

Assignmentfinal take home examination on basic erp

Assignment Final Take Home Examination on Basic ERP Configuration Concepts Provide brief but clear and specific answers to the following questions. Consult any sources necessary, including SAP's Help features. 1. What ar ...

Assignment managerial accountingbackgroundperformance

Assignment: Managerial Accounting Background: Performance Drinks, LLC is owned by Dave N. Port. Performance Drinks produces a variety of sports centered drinks. They began operations in 1993 shortly after Mr. Port gradua ...

1 prepare an answer to management application ma 13-31

1. Prepare an answer to Management Application MA 13-31, which can be found on page 13-24 of your text (the question concerns ExxonMobil). 2. Oregon Manufacturing had the following data for the past three months.   Janua ...

Modified accrual accounting and general fund itemscomplete

Modified Accrual Accounting and General Fund Items Complete the following questions based on the Chapter 4 material: • Outline revenue recognition criteria under modified accrual accounting. Include specific requirements ...

Questionsq1 discuss how the sec has influence if any over

Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the ...

Transactions and fasb standards1 the new city college

Transactions and FASB Standards 1. The New City College reported deferred revenues of $612,000 as of July 1, 2014, the first day of its fiscal year. Record the following transactions related to student tuition and fees a ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen