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grigory [225]
3 years ago
12

JESSICIA IS A 25 % PARTNER IN THE JRL PARTNERSHIP. ON JANUARY 1, JRL DISTRIBUTES $40,000 CASH TO JESSICIA.

Business
1 answer:
Korolek [52]3 years ago
3 0

Answer:

4. $12,000 CAPITOL GAIN

Explanation:

JRL distributes $40,000 Cash to Jessica which includes $28,000 basis of Jessica in JRL. So the remaining amount of $12,000 will be accumulated as Capital Gain for Jessica as JRL has no other Asset or Liability at the date of Distribution of Cash.

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