Villalpando Winery wants to raise $35 million from the sale of preferred stock. If the winery wants to sell one million shares
1 answer:
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Answer:
$58,500
Explanation:
The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:
1. Determine the contributed capital.
According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.
2. Calculate capital increases.
The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.
Now, we must add the contributed capital plus capital increases:
3. Calculate mortgage debt issues.
The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:
On the other hand, the remaining mortgage on the building is calculated, by dividing the value of the adjusted base of the property, in this case, 39,000 by 2, which results in 19,500.
Therefore, mortgage debt issues are equivalent to:
We add the contributed capital plus capital increases plus mortgage debt issues:
4. Subtract debts.
The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.
Therefore:
58,500 is Brett´s outside tax basis in his LLC interest.
On a balance sheet, we can see it as follows:
Particulars Amount in $
Cash 9,500
+Adjusted basis of the 39,000
building
+50% profit sharing ratio 29,500
+Nonrecourse mortgage 5,000
less adjusted basis
+Remaining mortgage on 19,500
building
TOTAL 102,500
-Debt on building (44,000)
Outside tax basis 58,500
Answer:
32,000
8000
see below
.16
see below
Explanation:
I'm not really sure what the schedule is supposed to look like (im not good at accounting) exactly but i whipped up something real quick in excel and if you have any questions ask
the depreciable cost is just cost-salvage (the amount that's going to be depreciated) so for us its 34000-2000 or 32,000
the depreciation expense is just the depreciable cost divided by the useful live (32,000/4)=8000
see my attempt at a depreciation schedule below
The deprecation rate per unit is the depreciable cost divided by the total units
32000/200000= .16
and you can see below my attempt at the units of production schedule
