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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

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Explanation:

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What is balance of trade and balance of payment?​
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the difference in value between a country's imports and exports.

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3 years ago
"Jefferson Sports Medicine, Inc., offers two types of physical exams for students : the basic physical and the extended physical
mafiozo [28]

Answer:

                                The sales budget    

          Jefferson Sports Medicine, Inc budgets sales budget (Amounts in $)

                                                              Months                            

Physical examination    July           August         September   Total

Basic physical               13,200       14,100           6,300           33,600

Extended physical        25,650       27,000         14,850          <u>67,500</u>

                                                                                                  <u> 101,100 </u>              

Explanation:

The sales expense shows the forecasted of sales from the various types of physical examination for a given period. These include the sales expected from Physical examination. The sales are the products of the charge per examination and the number of examinations conducted. It may be computed as follows;

July;

Physical examination

= $60 * 220

= $13,200

Extended physical

= $135 * 190

= $25,650

August

= $60 * 235

= $14,100

Extended physical

= $135 * 200

= $27,000

September

= $60 * 105

= $6,300

Extended physical

= $135 * 110

= $14,850

4 0
3 years ago
On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of
Scilla [17]

Answer:

$750

Explanation:

Calculation for What was the amount of the credit to depreciation expense on the 2020 consolidation worksheet

2020 Credit to depreciation expense=[($60,000/5 years )-($60,000-$25,000/5 years)]/5 years*9/12

2020 Credit to depreciation expense=[($60,000/5 years )-($35,000/5 years)]/5 years*9/12

2020 Credit to depreciation expense=[($12,000-$7,000)/5 years*9/12]

2020 Credit to depreciation expense=$5,000/5 years*9/12

2020 Credit to depreciation expense=$750

Therefore the amount of the credit to depreciation expense on the 2020 consolidation worksheet is $750

4 0
3 years ago
The business bought supplies on account. To record this transaction,
Alla [95]
Hi there

The answer is
C. an asset is debited, and a liability is credited.

Good luck
4 0
3 years ago
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