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Elena-2011 [213]
3 years ago
14

When Padgett Properties LLC was formed, Nova contributed land (value of $340,500 and basis of $85,125) and $170,250 cash, and Os

car contributed cash of $510,750. Both partners received a 50% interest in partnership profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at $ . b. What is Padgett's tax basis in the land? $ c. If Padgett sells the land several years later for $510,750, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $ .
Business
1 answer:
max2010maxim [7]3 years ago
7 0

Answer:

See the explanation below:

Explanation:

a. How is the land recorded for § 704(b) book capital account purposes? For § 704

Debit cash with $170,250

Debit land with $340,500

Credit Nova's Capital account with $510,750

b. What is Padgett's tax basis in the land?

Padgett's tax basis in the land is $85,125 that is carried over.

c. If Padgett sells the land several years later for $510,750, how much tax gain will Nova and Oscar report?

Built in gain = $340,500 - $85,125 = $255,375

Gain from sale = $510,750 - $340,500 = $170,250

Share of gain from sale = $170,250 * 50% = $85,125

Gain to report by Nova = Built in gain + Share of gain from sale = $255,375 + $85,125 = $340,500

Gain to report by Oscar = Share of gain from sale = $170,250 * 50% = $85,125

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Answer:

The amount worth $6,000 will be debited to the account in Year 2

Explanation:

When the uncollectible accounts are written off, then the debit is created to the allowance and the credit to the accounts receivable. The starting balance in the allowance account is $90,000 and the ending balance is $100,000 and the expense of bad debt is $16,000

The write off is computed as:

Write off = Beginning balance + Bad debt expense - Ending balance

= $90,000 + $16,000 - $100,000

= $106,000 - $100,000

= $6,000

Therefore, the amount of $6,000 is to be write off in Year 2

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2 years ago
Uber’s strategy has been to break these regulations, establishing its service first, and then fighting attempts by regulators to
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2 years ago
An insurance firm agrees to pay you $3,310 at the end of 20 years if you pay premiums of $100 per year at the end of each year f
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Answer:

6.43%

Explanation:

The internal rate of return shall be determined by the Insurance firm using the following mentioned method:

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($100)                 1-20                      ($851)                            ($1,487.75)                      

$3,310                 20                        $492                             $1,832.67

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3 0
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Answer:

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Explanation:

<u>Step-1:</u>

Br₂ + NaOH → NaBrO₂ + NaBr + H₂O

<u>Step-2:</u>

Elements. LHS RHS

Br 2 2

Na 1 2

O 1 3

H 1 2

<u>Step-3:</u>

Elements L.H.S R.H.S

Br 2 × 2 4

Na 1 × 4 4

O 1 × 4 4

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<u>Step-4:</u>

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<u>2Br₂ + 4NaOH → NaBrO₂ + 3NaBr + 2H₂O</u>

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