1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yarga [219]
3 years ago
9

Sarah is a 50 percent partner in the SF Partnership and has an outside basis of $56,000 at the end of the year prior to any dist

ributions. On December 31, Sarah receives a proportionate operating distribution of $20,000 cash. What is the amount and character of Sarah's recognized gain or loss and what is her basis in her partnership interest?
Business
2 answers:
jok3333 [9.3K]3 years ago
8 0

Answer: A. $0 gain, $36,000 basis

Explanation:

Sarah will recognize no profit or loss on this distribution.

She will then adjust her basis based on the amount of cash that she received which is $20,000.

She will adjust her basis such that the $20,000 will be the result if she subtracts new her basis from the old one so,

= 56,000 - 20,000

= $36,000

If you need any clarification do comment. Cheers.

Vikentia [17]3 years ago
3 0

Answer:

A. $0 gain, $36,000 basis

Explanation:

In the distribution, from the information given, Sarah does not recognize any gain or loss.

However, given that

She had $56000 basis at end of year prior to distribution.

Then receives $20000 from distribution after reallocating her basis in SF to cash in amount equal to distribution

Therefore,

Her basis left = 56000 - 20000

= $36000

You might be interested in
Oriole’s Electronic Repair Shop started the year with total assets of $300000 and total liabilities of $208000. During the year,
AVprozaik [17]

Answer:

$154,700

Explanation:

The computation of the change in amount is shown below

But before that first find out the ending capital balance which is

= (Total assets - total liabilities) + (revenues - expenses) - drawings

= ($300,000 - $208,000) + ($523,000 - $319,000) - $49,300

= $92,000 + $204,000 - $49,300

= $92,000 + $154,700

= $246,700

Now the change in capital balance is

= Closing balance - opening balance

= $246,700 - $92,000

= $154,700

7 0
4 years ago
From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simu
OverLord2011 [107]

Answer:

True

Explanation:

The theory of constraints focuses on establishing the most important limiting factor or constraint in a business and improve it in order to improve the whole company's performance.

In simple terms, a company recognizes their greatest weakness and tries to improve it, so that it no longer represents a limitation.

This theory was originally developed for manufacturing companies, and it was meant to reduce bottlenecks (manufacturing constraints). Therefore one of its main goals is to lower inventory levels and operating costs while increasing production output.

8 0
3 years ago
Jesse wants my thoughts on how we can use prototyping for tims. she also wants me to prepare a system requirements document and
svp [43]

When prototyping new products, most people will want a presentation on what the prototype will look like, the functions, the benefits, how it differs from previous products or other companies' products and the pricing. A management presentation is important because it should help break down all the information needed before approval of the new product is approved.

4 0
3 years ago
Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major c
laila [671]

Answer:

The correct answer is D. externalities.

Explanation:

An externality is defined as that situation or group of situations that determine that a service good is not reflected at its real market price. In this example, the computer industry is so close that they do not know for sure the benefits they have when offering their goods, and it becomes an advantage in the sense that due to its close location it is possible to establish agreements to manage prices and not enter into direct market competition.

7 0
3 years ago
A company paid ​$140 comma 000 for a new​ 18-wheeler. When it is 11 years old it will be worth ​$30 comma 000. Using​ straight-l
ser-zykov [4K]

Answer:

V(n)=140,000-10000n

V(7)=$70,000

Explanation:

Purchase Cost= $140,000

Value After 11 Years =$30,000

Depreciation per Year = \frac{140000-30000}{11}  = \frac{110000}{11} =10000

The truck depreciates at a rate of $10000 per year.

Using​ straight-line depreciation, the value of the truck in​ dollars, V

The linear function of its age in years n, V(n)=140,000-10000n

When the truck is 7 years old

n=7

Truck's Value, V(n)=140,000-10000n

=140,000-(10000X7)

=140,000-70000

=$70,000

4 0
3 years ago
Other questions:
  • To maintain a competitive advantage, the top management of a national furniture store made the decision to increase employee tra
    13·1 answer
  • if you're interested in working for a specific company what type of job site should you look at for opening
    8·2 answers
  • When a life insurance company advertises the safety and security of its products, it is using a ________ advertising strategy.
    15·1 answer
  • Pandora invested in the Box Mutual Fund by purchasing 1,000 shares on November 9, Year 1. On the first day of every month, the B
    12·1 answer
  • A firm just paid a dividend of $6 per share. Next year the dividend is expected to grow 8 percent, thereafter 10 percent forever
    12·1 answer
  • A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers
    7·1 answer
  • Charles Underwood Agency Inc.’s FCFs are expected to grow at a constant rate of 3.90% per year in the future. The market value o
    10·1 answer
  • In the value chain, what is the term of the activities that are required but not directly add value to the company's products or
    9·1 answer
  • The statement of cash flows reports:_______ a) Changes in equity. Equity, net income, and dividends. b) Cash inflows and cash ou
    6·1 answer
  • Bob’s Computer Store has many different types of computers for consumers' varying budgets. A customer can purchase a desktop com
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!