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Helga [31]
3 years ago
14

An existing partner wants to contribute property having a basis less than its FMV for an additional interest in a partnership. a

. Should he contribute the property to the partnership
Business
1 answer:
tino4ka555 [31]3 years ago
8 0

Answer:

He should not contribute the property to the partnership.

Explanation:

There is an ensuing loss if the partner contributes the property to the partnership instead of a gain.  Partnerships recognize the basis of contributed capital.  They usually compare the fair market value with the book value to determine if a loss has been incurred or a gain made. However, the tax consequences of the contributed property will be allocated to the partner making the property contribution.

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Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no
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This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

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3 0
4 years ago
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Answer:

a.

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I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
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A voip caller wishing to contact another sends an invite message to ________.
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4 0
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An investment of $10,000 today is estimated to return $11,500 a year from now. The $11,500 is called the ________ of the investm
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