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postnew [5]
3 years ago
11

At the beginning of the year, Penny's "tax basis" capital account balance in the PAL Partnership was $60,000. During the tax yea

r, Penny contributed property with a basis of $10,000 and a fair market value of $30,000. Her share of the partnership's ordinary income and separately stated income and deduction items was $26,000. At the end of the year, the partnership distributed $10,000 of cash to Penny. Also, the partnership allocated $15,000 of recourse debt and $25,000 of nonrecourse debt to Penny. What is Penny's ending capital account balance determined using the "tax basis" method?
a. $96,000.
b. $86,000.
c. $136,000.
d. $101,000.
e. $126,000
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

B) $86,000.

Explanation:

Penny's ending capital account using the tax basis method = beginning capital account balance + property contribution valued at basis not fair market value + Penny´s share of the partnership's income - distributions = $60,000 + $10,000 + $26,000 - $10,000 = $86,000

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Decision alternatives:_______
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Answer:

The correct answer is letter "A": should be identified before decision criteria are established.

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3 0
2 years ago
Sand, Inc. has outstanding $5,000,000, 10%, 20-year bonds. The bonds are callable at 104 on any interest date. The bonds were is
Ray Of Light [21]

Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.

Explanation:

The bonds were issued at Par. This means they were issued at 100 of par.

The bonds are now trading at 104 of par.

If Sand Inc calls the bonds then they will make a profit (loss) of,

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Therefore their Profit (loss) will be the bond at par minus the Calling price

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= -$200,000

That means they make a loss of $200,000 in the year the bonds are called.

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6 0
3 years ago
If the current interest rate is 5% and your semi-annual coupon paying bond has a duration of 5.33 years, how much will the price
Serhud [2]

Answer:

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7 0
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Four candidates with the same qualification are interviewed for the position of sales representative. looking at the given chara
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Answer:

Explanation:

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