Pablo has a $63,000 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in
a proportionate current distribution, cash of $25,000, cash basis receivables with an inside basis of $0 and a fair market value of $16,000, and land with a basis and fair market value to the partnership of $80,000.
How much is Pablo’s realized and recognized gain on the distribution?
How much is Pablo’s realized and recognized gain on the distribution?
1 answer:
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A bag of chips will cost $1.25. The price is calculated by making linear equations in two variables and solving them by substitution method.
<h3>What is a linear equation in two variables?</h3>Linear equation in two variables can be defined as an equation in the form:
, where x and y are variables and a and b are not equal to 0.
For the given problem, let "s" be the cost of a sandwich and "c" be the cost of a chips bag.
Given:
The cost of three sandwiches and two chips bags is $22.00.
Therefore, the 1st equation will be:
The cost of two sandwiches and one chips bag is $14.25.
Therefore, the 2nd equation will be:
To calculate the cost of a chips bag, we need to solve equation 1 and equation 2 by the substitution method.
From equation 2, the value of c will be:
... (3)
Now we will put in equation 1:
On substituting the value of s in equation 3:
Therefore the cost of a bag of chips is $1.25.
Learn more about linear equations in two variables here: