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olga55 [171]
3 years ago
14

Scott is a 50% partner in the LS Partnership. Scott has a basis in his partnership interest of $84,000 at the end of the current

year, prior to any distribution. On December 31, Scott receives an operating distribution of $9,000 cash and a parcel of land with a $21,000 fair market value and a $12,000 basis to the partnership. LS has no debt or hot assets. What is the amount and character of Scott's recognized gain or loss
Business
1 answer:
SVETLANKA909090 [29]3 years ago
7 0

Answer:

A. No gain or loss

B. Cash $9,000

Land $12,000

C. $63,000

Explanation:

A. Based on the information given he RECOGNIZES NO GAIN OR LOSS

B. Based on the information given his basis in the distributed property will be basis of $9,000 cash and basis of $12,000 land

C. Calculation to determine his ending basis in his partnership interest

Ending basis=$84,000 - $9,000 - $12,000

Ending basis =$63,000

Therefore his ending basis in his partnership interest will be $63,000

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Naya [18.7K]

Option (B) The net cash provided by investing activities is $99000 is correct.

<h3>What is net cash?</h3>
  • On a company's financial statements, net cash is a sum that is given.
  • It is determined by deducting a company's total cash from its total liabilities.
  • When assessing the cash flows of a corporation, the net cash figure is frequently utilized.
<h3>What is cash flow?</h3>
  • The net balance of money coming into and going out of a business at a particular period is referred to as cash flow.
  • A firm constantly receives and expends cash.
  • For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
<h3>Calculation of Net cash provided by investing activities:</h3>

Net cash provided by investing activities = land ($154000 cash inflow) - equipment purchase ($55000 cash outflow) = $99000

Hence, The net cash provided by investing activities is $99000.

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5 0
1 year ago
Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $88,000, o
AlekseyPX

The amount of net income reported on Sparty's income statement is $19,690.

<h3>What is revenue?</h3>
  • The total amount of income earned by the sale of goods and services connected to the principal operations of the firm is referred to as revenue in accounting.
  • Commercial revenue is often known as sales or turnover.
  • Some businesses make money by charging interest, royalties, or other fees.
<h3>What are dividends?</h3>
  • A dividend is a profit distribution made by a corporation to its shareholders.
  • When a corporation makes a profit or has a surplus, it can pay a portion of the earnings to shareholders as a dividend.
  • Any money that is not dispersed is re-invested in the company.
<h3>Solution -</h3>

To find the amount of net income reported on Sparty's income statement, use the following formula:

Net Income = Gross Profit — Operating Expenses — Other Business Expenses — Taxes — Interest on Debt + Other Income

Net income = 80000 - 31000 - 11000 - 18130 = 19690

Therefore, the amount of net income reported on Sparty's income statement is $19,690.

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4 0
2 years ago
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the m
Sergeeva-Olga [200]

Answer:

B. Growth.

Explanation:

The growth stage is the period during which the product inevitably and progressively gains acknowledgment among buyers, the industry, and the more extensive overall population. During this stage, the product or the development gets acknowledged in the market, and subsequently deals and incomes begin to increment.

7 0
3 years ago
When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing a. a viol
Oliga [24]

Answer:

c. the entry of new firms

Explanation:

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  • This declines the economic profits in the new and the existing firms as long as the profits exists  in the markets and entry will continue to shift to supply to the right.
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7 0
3 years ago
You have been asked to assist Emerald City in its response to increasing flooding. The National Weather Service (NWS) reports it
Zinaida [17]

Answer: Divide the Operations Section into three Divisions, each assigned to a different geographical area to evacuate.

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Since the initial objective is to evacuate residents, therefore, in addition to a Flood Control Group and a Nursing Home Task Force, another organizational structure that can be used to tackle this issue is to divide the Operations Section into three Divisions, each assigned to a different geographical area to evacuate.

Assigning the individuals in each group to s particular area will lead to a faster evacuation and bring about efficiency with regards to the evacuation.

7 0
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