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Stels [109]
3 years ago
14

Mike, Matt, Brooke, and Kellie decide to go into business together. The form a limited partnership where Mike, Matt, and Brooke

are the limited partners. They contribute the following amounts: Mike - 25,000 Matt - 10,000 Brooke - 10,000 Kellie - 5,000
Additionally, the partnership agreement states that all profits are to be distributed equally. Mike will perform services for the company and will be paid $100,000 a year for those services. The company will be able to deduct this amount from net income. In the first year of operations, the company had the following items of income:
Services - 160,000
Expenses - 24,000
Depreciation - 28,000
Finally, no one withdraw any money from the partnership, save Matt who withdraws $15,000.
What is the maximum Kellie can withdraw without having a gain in excess of basis?
Business
1 answer:
Fed [463]3 years ago
8 0

Answer:

$7,000

Explanation:

the partnership's net income = $160,000 - $100,000 - $24,000 - $28,000 = $8,000

since net income is divided equally among the 4 partners, then each partner is allocated $2,000

Kellie's capital account = $5,000 + $2,000 (her share of profits) = $7,000

if she withdraws more than $7,000, then she should report a gain in excess of basis

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Rhonda has an adjusted basis and an at-risk amount of $25,600 in a passive activity at the beginning of the year. She also has a
aliya0001 [1]

Answer:

a) Ending adjusted basis and at-risk amount $ 0

(b)The current passive loss is $12,000. Because $7,500 of the loss is used to reduce

the at-risk amount to $0, $4,500 is suspended under the at-risk rules ($12,000 − $7,500 = $4,500).

(c) The $7,500 loss that is not limited by the at-risk rules is subject to the passive loss

rules. Because the taxpayer has not generated any passive income during the year, this $7,500 current-year passive loss is suspended. Therefore, the total suspended passive loss carried forward to subsequent years totals $9,000 ($7,500 current-year suspended loss + $1,500 prior year suspended loss).

Explanation:

5 0
2 years ago
You can also improve your messages through stylistic emphasis in sentence structure and word choice. Which of the following styl
kari74 [83]

Answer: Use vivid words.

Label descriptive modifiers.

Position important ideas first or last in a sentence.

Explanation:

The stylistic devices that can be used to achieve emphasis include using of vivid words, labelling descriptive modifiers and also by positioning the important ideas as the first or last in a sentence.

For the readers to be able to picture ones ideas, it is appropriate to use vivid words and also the readers will notice the important ideas when they're placed in either the first or the last part.

Using general terms

4 0
3 years ago
What is the MAIN reason why some stores want to close on Thanksgiving?
Contact [7]

\mathrm {Hey, there!}

Your answer is:

It is too difficult to compete with major retailers like Target and Best Buy.

When a lot of people buy things from a store, there is a lot of turbulence in many stores, espeically in big retailers. The answer will be It is too difficult to compete with major retailers like Target and Best Buy.

Best of Luck!

8 0
3 years ago
Read 2 more answers
3. What is dollar voting? How can it affect the launch of the franchise into the new region?
icang [17]

Answer:

Dollar voting is an analogy that has been used to refer to the impact of consumer choice on producers' actions through the flow of consumer payments to producers for their goods and services.

3 0
3 years ago
S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L pu
nikdorinn [45]

Answer:

2018 loss for 1,500

2019 gain for 4,000

Explanation:

purchase at 715,000

December 31th 713,500

adjusting entry december 31th

loss on investment          1,500 debit

    marketable securities                     1,500 credit

january 3rd, 2019

cash                                717,500 debit

     gain on investemnt                       4,000 credit

     martetable securities                 713,500 credit

to record gain on investment

6 0
3 years ago
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