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
dybincka [34]
3 years ago
7

On November 1, Ashton sells her interest in XYZ partnership to Wayne for $200,000 cash and a release of liability of $30,000. As

hton’s basis at the beginning of the year was $125,000 (including the $30,000 of liability). Ashton’s share of income through November 1 was $45,000, and she received a $15,000 cash distribution earlier in the year. What are the tax consequences to Ashton of the sale of her partnership interest?
Business
1 answer:
polet [3.4K]3 years ago
3 0

Answer:

$75,000 capital gain

Explanation:

Ashton’s basis at sales = Beginning basis + Share of income - Sash distribution = $125,000 + $45,000 - $15,000 = $155,000.

Capital gains (loss) = Sales proceed + Liability - Basis at sales = $200,000 + $30,000 - $155,000 = $75,000 gain.

Therefore, t he tax consequences to Ashton of the sale of her partnership interest is a capital gain of $75,000.

You might be interested in
A short-term lease: Multiple Choice Must be accounted for by the short-cut method if using U.S. GAAP. Is defined as having a val
Sauron [17]

Answer: Not required to be accounted for by the short-cut method if using IFRS.

Explanation:

A Short term Lease is one where a person or entity is granted the legal use of a space for a small period of time which is a year or less.

In calculating this, the Sixteenth International Financial Reporting Standards, IFRS 16, states that a Short Term lease may be charged directly to a Profit and Loss account.

It does not approve the use of the Shortcut method which is a qualitative measure of analysis that is ONLY approved under the US Accounting system (GAAP) and even then is not widely used.

6 0
3 years ago
If you buy the stock and plan to sell it 3 years from now, what are your expected cash flows in (i) year 1; (ii) year 2; (iii) y
Goryan [66]

Answer and Explanation:

Year 1 Dividend = 1.04

Year 2 Dividend = 1.08

Year 3 Dividend = 1.12

Year 3 Sale of Stock = 14.62

Year 1 Total Cash Flow = 1.04

Year 2 Total Cash Flow = 1.08

Year 3 Total Cash Flow = 15.74

3 0
3 years ago
Joel and Liza are having a disagreement over one of their stock investments, which just lost 15 percent in a short period of tim
anastassius [24]
B.

It says Liza is risk tolerant, therefore it would make sense that she would hold on to these stocks as risk tolerant people often hold onto stocks in the long term.
8 0
3 years ago
Read 2 more answers
The most frequent reason that some corporations send their manufacturing operations outside of the united states is to find high
marishachu [46]

To find highly skilled workers who are specialized

5 0
2 years ago
The manager of the marketing team has thoughtfully selected team members with their strengths in mind to play roles based on the
hodyreva [135]

Answer:

The correct option is advisor.

Explanation:

In business, advisors can be described as persons who evaluate circumstances and suggest options as what could be done during different circumstances. These options are suggested for the benefit of the company and to lead it towards success. An advisor usually evaluates the business plan for a company.

In the above-mentioned scenario, Andy is entitled to evaluate particular situations and provide better options, hence she is playing the role of an advisor.

3 0
3 years ago
Read 2 more answers
Other questions:
  • As explained in the individual in a networked world: two scenarios, the metaverse will be a combination of:
    9·1 answer
  • Assume you are planning a spring break ski trip to Colorado. You are preparing a budget of your costs. You are staying at a lodg
    15·1 answer
  • The numerator of the return on total assets is: a.net income. b.net income minus preferred dividends. c.net income plus tax expe
    12·1 answer
  • The money multiplier declined significantly during the period​ 1930-1933 and also during the recent financial crisis of​ 2008-20
    13·1 answer
  • When assessing fraud risk,
    8·1 answer
  • A company that makes fireplace mantles uses computer modeling in order to ensure that the process used makes the most efficient
    15·1 answer
  • The Blending Department of Luongo Company has the following cost and production data for the month of April.
    10·1 answer
  • An account into which a person deposits money and then can withdraw funds by making a written order to the bank instructing it t
    9·1 answer
  • When the money supply decreases a.interest rates fall and so aggregate demand shifts right. b.interest rates rise and so aggrega
    11·1 answer
  • The channels through which advertising is carried to prospective customers are advertising: Group of answer choices conduits med
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!