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stira [4]
3 years ago
7

Partner Beth has a basis of $10,000 in a partnership at the beginning of the year. She receives $6,000 in cash distributions, he

r distributive share of income is $5,000, and she receives a land distribution with a basis of $8,000 (FMV $20,000). What is Beth’s partnership interest basis at the end of the year?
a. $0
b. $1,000
c. $9,000
d. $10,000
Business
1 answer:
Elan Coil [88]3 years ago
4 0

Answer:

b. $1,000

Explanation:

Basis at the beginning of the year $10,000

Less cash received $6,000

=$4,000

Distributive share of income is $5,000

Less land distribution with a basis of $8,000

=$3,000

Hence:

$4,000-$3,000

=$1,000

Therefore Beth’s partnership interest basis at the end of the year will be $1,000

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Explain the role of finance in business​
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Answer:

Definition 1:

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(please note that this was found by doing research.)

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4 years ago
Read 2 more answers
A European call and put option on the same security both expire in three months, both have a strike price of 20, and both sell f
victus00 [196]

Answer:

Call payoff = Max [0, Stock price - Strike price]

Call payoff = Max[0,25-20]

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Put payoff = max[0,20-25]

Put payoff = 0

Strike price = K = 20

Stock price​ = S = 25

interest rate = 10% = 0.1

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Put call parity: C + K*Exp(-r*T) = P + S

C = P + S​ - K*Exp(-r*T)

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4 0
3 years ago
If Company XYZ sells $1,000,000 in assets to pay down $1,000,000 in debt, what impact would this have on the company’s debt to t
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Answer:

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Now the Company XYZ has decided to sell the the assets worth $1,000,000 to pay Debts so the assets now will become $1,000,0000 while the Debts now will become $500,000 and accordingly the debt to asset ratio will be calculated as follows:

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3 years ago
Shane owns shares of Vegan Pizza Inc., a food and beverages company. The company's financial situation takes a turn for the wors
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Answer:

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