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Fynjy0 [20]
3 years ago
5

Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distributi

on. His basis in his partnership interest is $16,000 before the distribution. If an amount is zero, enter "0". a. What amount of gain must Walter recognize as a result of the current distribution?
Business
1 answer:
enot [183]3 years ago
4 0

Answer:

Walter's recognized gain is $2,000

Explanation:

Walter's gain/loss = cash distribution - basis in the partnership = $18,000 - $16,000 = $2,000

A partner (Walter) does not have to recognize income on a non-liquidating partnership distribution of property other than money. This land distribution must be treated as a sale and recorded at fair market value.

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If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is view
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3 years ago
The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
lorasvet [3.4K]

This question is incomplete, the complete question is;

We will derive a two-state put option value in this problem.

Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.

The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put

Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5

Explanation:

Given that;

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