1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Semmy [17]
2 years ago
13

When Padgett Properties LLC was formed, Nova contributed land (value of $358,500 and basis of $89,625) and $179,250 cash, and Os

car contributed cash of $537,750. 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 $ 358,500 . b. What is Padgett's tax basis in the land? $ 89,625 c. If Padgett sells the land several years later for $537,750, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $ 89,625 .
Business
1 answer:
lawyer [7]2 years ago
4 0

Answer:Amount of Nova and Oscar's gain=$492,937.50

Explanation:

a)According to  Land recorded for   § 704(b) book capital account purposes, Land is  recorded at fair market value. With this, the Padgett properties should record the land at $358,500

b)From the question, it is given that the  basis of land is  $89,625. Therefore, the Padgett Properties LLC's tax basis in the land is $89,625.

c)Amount of Nova and Oscar's gain.

Fair market value of Land         $358,500

Basis of land                                  $89,625  

total                                              $ 448,125

but Gain =  Selling price of land - Fair value of Land  x interest in partnership profits and capital  

= $537,750 - ($358,500+$89,625 )

=($537,750 - $448,125 )  x 50% =$44,812.50

Total gain                   $448,125 + $44,812.50 =$492,937.50

You might be interested in
What is the return on common stockholdersâ equity based on the following: Beginning Common Stockholdersâ Equity: $10,317,000 End
Slav-nsk [51]

Answer:

13.28%

Explanation:

return on stockholders' equity = net income after taxes and preferred stock dividends / average stockholders' equity

  • net income = $1,429,000
  • preferred stocks dividends = 8,000 stocks x $75 x 6% = $36,000
  • average stockholders' equity = ($10,317,000 + $10,662,000) / 2 = $10,489,500

return on stockholders' equity = ($1,429,000 - $36,000) / $10,489,500 = 13.28%

5 0
3 years ago
Training workers to do their jobs properly and working with suppliers to improve the quality of material they supply to you are
rjkz [21]
Making your buisiness better
5 0
3 years ago
Read 2 more answers
To take advantage of an arbitrage opportunity, an investor would
Svetach [21]

Answer:

The answer is III) make simultaneous trades in two markets without any net investment.

Explanation:

Arbitrage is simultaneously buying an asset ( may be currency, securities...) in a low-priced market and sell it in a high-priced market.

As a results, the investor earns profit from price differences in the two markets without risk and net investment. It is because the two trading happens at the same time once price differences in any two markets are recognized ( arbitrage opportunities recognized) and the proceed of selling the asset is immediately used for financing/returning to the buying of the asset.

Thus, (III) is the correct answer.

5 0
3 years ago
Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the sel
Step2247 [10]

Answer:

$3,130,000

Explanation:

Net operating income = Total revenue - Total cost

Total revenue = price x quantity = $9,500 x 400 = $3,800,000

Total cost = $670,000

Net operating income = $3,800,000 - $670,000 = $3,130,000

I hope my answer helps you

3 0
2 years ago
It is not possible for abandonment options to decrease a project's risk as measured by the project's coefficient of variation.
Tatiana [17]

This is false abandonment options should decrease a project's risk.

4 0
2 years ago
Other questions:
  • A large computer company was well known for the frequent debate among employees regarding various issues. Employees weren't afra
    6·1 answer
  • Moshi and her best friend have phrases they use with each other that have specific meanings. For example, when they’re upset abo
    8·1 answer
  • The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 81,000 units of this
    9·1 answer
  • Basil Corporation issues for cash $1,000,000 of 8%, 10-year bonds, interest payable annually, at a time when themarket rate of i
    13·1 answer
  • Which accounting principle states that a company should "report expenses in the same period as the revenue they help generate"?
    7·1 answer
  • "______ involves division of an organization's work and applies motivational theories to jobs to increase satisfaction and perfo
    8·1 answer
  • Timothy uses a decision-making style characterized by low tolerance for ambiguity and a rational way of thinking. He typically m
    9·1 answer
  • Alejandro Yago leased a Jeep for $209.00 per month for 60 months.He paid a deposit of $850.00, a title fee of $45.00, and a lice
    12·1 answer
  • Which group once represented 35 percent of the labor force, but today, __________ represent only about 11.1 percent of the labor
    7·1 answer
  • Females, it is said, make 70 cents to the dollar in the United States. To investigate this phenomenon, you collect data on weekl
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!