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Answer: $0 equipment, $20,000 land, $30,000 inventory, $90,000 partnership interest.
Explanation: The asset basis in the partnership between Xena and Xavier is the same same their basis. In the scenario above, Xena's basis is the same as Xena's partnership basis in asset.
Xena's asset basis include;
Cash = $20,000
Land basis = $40,000
Inventory basis = $30,000
Equipment basis = $0
Therefore Xena's basis in the partnership interest :
$(20,000 + 40,000 + 30,000 + 0) = $90,000
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Answer:
d. -$4,608
Explanation:
The computation of the total capital gain is shown below:
Total capital gains is
= (End value - Beginning value) × 900 shares
= ($34.08 - $39.20) × 900 shares
= -$4,608
Hence, the total capital gain on this investment is -$4,608
Therefore the option d is correct
And, the same is to be relevant
