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lidiya [134]
2 years ago
6

Sue invested $12,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $

34,000 of qualified nonrecourse debt and $34,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both types of debt resulting in a tax basis of $18,800 and an at risk amount of $15,400. During the year, ABC LP generated a ($97,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?
Zero; all of her loss is allowed to be deducted.


$3,400 disallowed because of her at-risk amount


$4,800 disallowed because of her tax basis


$6,800 disallowed because of her tax basis


$6,800 disallowed because of her at-risk amount
Business
1 answer:
FrozenT [24]2 years ago
4 0

Answer:

Option (B) is correct.

Explanation:

Invested amount = $12,000

Interest received in partnership = 10%

qualified non-recourse debt in partnership = $34,000

Loss allowed = $15,400 (At risk amount)

Tax basis = $18,800

Disallowed loss = Loss allocation - Risk amount

                          = $18,800 - $15,400

                            = $ 3,400

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On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. Marino planned to drive the truck for 100,000
Temka [501]

Answer:

The amount of accumulated depreciation shown on the Year 3=$38,000

Explanation:

Depreciable cost=asset cost-salvage value

where;

asset cost=$48,000

salvage value=$8,000

replacing;

depreciable cost=48,000-8,000=$40,000

The depreciation rate per unit=depreciable cost/planned number of units

where;

depreciable cost=$40,000

planned number of units=100,000 miles

replacing;

depreciation rate per unit=40,000/100,000=$0.4 per mile

depreciation expense for year 1=depreciation rate per unit×actual miles driven

depreciation rate per unit=$0.4

actual miles driven=40,000 miles

replacing;

depreciation expense for year 1=(0.4×40,000)=$16,000

depreciation expense for year 2=depreciation rate per unit×actual miles driven

depreciation rate per unit=$0.4

actual miles driven=20,000 miles

replacing;

depreciation expense for year 2=(0.4×20,000)=$8,000

depreciation expense for year 3=depreciation rate per unit×actual miles driven

depreciation rate per unit=$0.4

actual miles driven=35,000 miles

replacing;

depreciation expense for year 3=(0.4×35,000)=$14,000

depreciation expense for year 4=depreciation rate per unit×actual miles driven

depreciation rate per unit=$0.4

actual miles driven=10,000 miles

replacing;

depreciation expense for year 4=(0.4×10,000)=$4,000

Accumulated depreciation on year 3=depreciation expense for year 1+depreciation expense for year 2+depreciation expense for year 3

accumulated depreciation on year 3=(16,000+8,000+14,000)=$38,000

The amount of accumulated depreciation shown on the Year 3=$38,000

5 0
3 years ago
Consider the following: Lumber Revenues, $120,000; Hardware Revenues, $90,000; Cost of Sales, $130,000; All other costs and expe
ANEK [815]

Answer:

19.05%

Explanation:

Data provided in the question:

Lumber Revenues = $120,000

Hardware Revenues = $90,000

Cost of Sales = $130,000

All other costs and expenses = $35,000

Investment Income = $8,000

Income Tax Expense = $13,000

Net Income = $40,000

Now,

The net profit margin = [( Net income) ÷ (Total revenue ) ] × 100%

or

The net profit margin = [ $40,000 ÷ ( $120,000 + $90,000 ) ] × 100%

or

The net profit margin = [ $40,000 ÷ $210,000 ] × 100%

or

The net profit margin = 0.1905 × 100%

or

The net profit margin = 19.05%

5 0
2 years ago
Long-term investments that cost the company $25 were sold during the year for $54 and land that cost $53 was sold for $28. In ad
adell [148]

Answer:

Explanation:

Long-term Investment cost = $25

Long-term Investment sales value = $54

Gain from Long-term Investment = $(54-25) = $29

Land cost = $53

Land sales value = $28

Loss from sale of Land = $(28-53) = -$25

Cash Dividend paid = $22

Total change in Assets = $(29-25) = $4

Total change in Equity = -$22

6 0
3 years ago
Adams County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their ow
pashok25 [27]
Explain this better plz
6 0
3 years ago
Superior Construction Co. was contracted to plaster all the buildings of a historical preservation project for $2,500,000 over t
Cerrena [4.2K]

Answer:

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

Explanation:

given data

historical preservation project = $2,500,000

time = 2 year

estimated costs = $2,000,000

Actual costs Years 1 = $800,000

Actual costs Years 2 = $900,000

to find out

what amount of gross profit would Superior report in Year 1

solution

we find here first Percentage Completion that is express as

Percentage Completion = Cost to date ÷  Estimated Total Cost  .............1

put her value we get

Percentage Completion = \frac{800000}{2000000}

Percentage Completion  = 40%

and

Revenue Recognized will be here

Revenue Recognized = Percentage Completion  × Total estimated Revenue   ...............2

Revenue Recognized = 40 % × 25000000

Revenue Recognized = 1000,0000

so here Gross Profit in Year 1  will be  

Gross Profit in Year 1 = Revenue Recognized - Cost to date of year 1   ..............3

Gross Profit in Year 1 =   1000,0000 - v800000

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

3 0
3 years ago
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