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Allisa [31]
3 years ago
15

On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (

adjusted basis of $100,000; fair market value of $150,000) in exchange for her interest in the partnership. Jason contributes property (adjusted basis of $180,000; fair market value of $200,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation?
(a) Jason recognizes a $20,000 gain on his property transfer.
(b) Jason has a $200,000 tax basis for his partnership interest.
(c) Anna has a $150,000 tax basis for her partnership interest.
(d) The partnership has a $150,000 adjusted basis in the land contributed by Anna.
Business
1 answer:
VLD [36.1K]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

Given that,

Anna contributes = $50,000 of cash

Parcel of land:

Adjusted basis = $100,000

Fair market value = $150,000

The contributions are free from taxes and carryover basis is applicable; thus 100,000 basis in the land plus 50,000 cash basis.

Therefore,

Anna's tax basis for her partnership interest :

= Adjusted basis + Cash contribution

= $100,000 + $50,000

= $150,000

Hence, Anna has a $150,000 tax basis for her partnership interest.

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Andrews [41]

Answer:

Positive Reinforcement: Giving a desired reward when a behavior is performed to increase how often the person repeats the behavior.

reinforcement: The process of increasing the incidence of a directly measurable behavior.

negative reinforcement: The removal of an unpleasant condition or consequence when a behavior is performed to increase how often the behavior is repeated.

7 0
3 years ago
How should the business be developed in the future? Be specifi c and consider changes related to your supplier, the monogramming
levacccp [35]

Answer:

Target customers and products

Explanation:

Businesses should be developed in the future along the line of its target customers and also in consideration of the type of products it produces. the main aim of every business is to meet and solve the needs of its target customers and its development should as well be tailored to always fulfill the need of its target customers.

Business are not developed based on specifics related to the supplier because the suppliers are not the end users of the project but the target customers are.

5 0
2 years ago
A shop that makes candles offers a blueberry scented candle which has daily demand of 10 boxes. Blueberry candles can be produce
Lostsunrise [7]

Answer:

E. 115 boxes.

Explanation:

d: 10 boxes/day

p: 36 boxes/day

n: 365 days

s: $60

H: $24 box/year

D: d*n

D= 10*365= 3650 boxes/year

EPQ = \sqrt{2DS/H} *\sqrt{p/p-d}

EPQ=\sqrt{2*365*60/24} *\sqrt{36/36-10}  

EPQ= 158.96 = 159 units

I=Q/P * (p-d)

I=159/36 * (36-10)

I=114.83

115 boxes aproximately

7 0
3 years ago
Many U.S. firms have sought relief from foreign competition by demanding protectionism policies by the U.S. government. A better
lord [1]

Answer: C) Continuously improve their products at home.

Explanation:

Protectionism policies like tariffs and import quotas have the effect of reducing free trade which erodes consumer welfare as well as hurting trade so should be avoided if better options exist.

One of those is for a company to increase its market base instead of relying on protection from the government. If they can expand into foreign market, they will have a larger market in which to trade their goods and increase profitability.

Another way is to improve their products at home. Better products would attract more customers to their products and increase profitability.

6 0
3 years ago
The following costs were incurred in May: Direct materials$40,500 Direct labor$36,700 Manufacturing overhead$28,800 Selling expe
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Answer:

$77,200

Explanation:

Conversion cost is calculated as;

= Direct labor cost + Manufacturing overhead.

Given that;

Direct labor cost = $40,500

Manufacturing overhead = $36,700

Conversion cost = $40,500 + $36,700

= $77,200

7 0
2 years ago
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