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vovikov84 [41]
3 years ago
9

Jerry, a partner with 30% capital and profit interest, received his Schedule K-1 from Plush Pillows, LP. At the beginning of the

year, Jerry's tax basis in his partnership interest was $50,000. His current year Schedule K-1 reported an ordinary loss of $15,000, long-term capital gain of $3,000, qualified dividends of $2,000, $500 of non-deductible expenses, a $10,000 cash contribution, and a reduction of $4,000 in his share of partnership debt. What is Jerry's adjusted basis in his partnership interest at the end of the year?
Business
1 answer:
Kisachek [45]3 years ago
5 0

Answer:

The Jerry's adjusted basis in his partnership interest at the end of the year is $45,500

Explanation:

The adjusted basis of Jerry in his partnership is shown below:

= Partnership interest - Ordinary loss + long term capital gain + dividend - non deductible expense + cash contribution - share reduction

= $50,000 -$15,000 + $3,000 + $2,000 - $500 + $10,000 -$4,000

= $45,500

The ordinary loss, share reduction, and non deductible expense would decrease the Jerry interest in partnership firm while all other cost would increase his interest. That's why the amount is added and subtracted.

Hence, the Jerry's adjusted basis in his partnership interest at the end of the year is $45,500

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The each transaction affecting or not the debt to assets ratio is given below;

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Explanation:

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3 years ago
The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in doll
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Step-by-step explanation:

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3 years ago
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 9.1% and 12.
podryga [215]

Answer:

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Portflio B = 13.5%

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Portflio B = 0.1479

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T- bill rate (Rf) =5%

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Portfolio A;

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