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Nookie1986 [14]
3 years ago
8

kristen and harrison are equal partners in the kh partnership. the partners formed the partnership 5 years ago by contributing c

ash. prior to any distributions harrison has a basis in his partnership interest of $44,000. on december 31, kh makes a proportionate operating distribution of $50,000 cash to harrison. what is the amount and character of harrison's recognized gain or loss and what is his remaining basis in kh?
Business
1 answer:
Sauron [17]3 years ago
4 0

Answer: Harrison will acknowledge a gain equal to the difference between his basis and the distribution . This is because he receives only money in the distribution and the amount transcend his basis in KH. He further allot his entire basis in KH to the basis in the money received resulting in $0 basis in KH after the distribution.

∴ <em>The capital gain will be $6000 i.e. (50000 - 44000) and $0 basis.</em>

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Systematic sample

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4 years ago
Domestic strategy reflects the choices a firm's executives make with respect to sourcing and selling its
OlgaM077 [116]

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True.

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3 years ago
Discuss the role of ethics in operations.
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3 years ago
An improvement made to a machine increased its fair market value &amp; production capacity by 25% without extending the machine'
yulyashka [42]

Answer:

c) capitalize in the machine account

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Since it is given that there is an improvement made to a machine due to which it increases the machine fair market value and at the same time it also increases the production capacity of 25% without extending the useful life of the machine

So as the question is talking about the improvement of the machine so the same is to be capitalized in the machine account

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3 0
3 years ago
Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a
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YTM = 0.6940%

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THe Yield to Maturity (YTM) is the return that you expect from the bond if you held the bond till maturity.

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YTM = \frac{F}{P}^{\frac{1}{n}} -1

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Given,

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3 years ago
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