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sasho [114]
3 years ago
10

During formation of Beecky partnership, Sam contributed property with an adjusted basis of $130,000 in exchange for a 25% intere

st in Beecky. The fair market value of the contributed property was $170,000 and the property was encumbered by a mortgage with a balance of $120,000. What amount of gain should Sam recognize from contributing the property into Beecky partnership?
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

Sam would not recognize any gain on the contribution.

Explanation:

A partner does not recognize a gain on the contribution from the appreciated property to a partnership unless it is subject to a liability that exceeds the contributing partner basis in the property. Sam is contributing property with a basis of $130,000, subject to a liability of $120,000, for a 25 % in partnership. As a result Sam would have a basis in the contributed property, minus the $120,000 liability assumed by the partnership, plus Sam's portion of the liability, 25% x $120,000 or $30,000.

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If a gain of $225,000 is incurred in selling (for cash) a building having a book value of $900,000, the total amount reported in
Valentin [98]

Answer:

$1,125,000

Explanation:

Given;

Gain from asset disposal = $225,000

Book value of asset disposed = $900,000

Therefore,

Amount of cash received from the sale = $900,000 + $225,000

                                                                  = $1,125,000

This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000

8 0
3 years ago
What is the present value of the following cash-flow stream if the interest rate is 5%
Talja [164]

Answer:

The present value of the cash flows is $ 786.

Explanation:

This problem requires us to calculate present value of cash flows given in the question. The present value can be calculated by discounting cash flows using interest rate (5%) as discount factor.

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PV = 181 + 354 + 251

PV = $ 786

(Discount factor = CF (1+interest rate)^-period)

5 0
4 years ago
In 2016, Joshua gave $12,500 worth of XYZ stock to his son. In 2017, the XYZ shares are worth $25,000. What is the total amount
Elina [12.6K]

Answer:

$12,500

Explanation:

Calculation for the total amount removed from Joshua’s estate in 2017

Since we were told that In 2016, Joshua gave the amount of $12,500 to his son in which in the same year which was 2017, the XYZ shares are worth the amount of $25,000 which means that the total amount removed from Joshua’s estate in 2017 will be $12,500 ($25,000-$12,500).

8 0
4 years ago
Ella has an offer to buy an item with a sticker price of $12,300 by paying $420 a month for 36 months. What interest rate is Ell
pentagon [3]

Answer:

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The interest is the difference between the amount paid and the actual cost.

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5 0
3 years ago
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