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luda_lava [24]
3 years ago
13

Partnership XYZ distributed a piece of land in a nonliquidating distribution to Bob, a 50% partner, during the current taxable y

ear. The land had an adjusted basis of $50,000 and a FMV at the date of the distribution of $180,000. Bob has been a partner for 10 years. He had contributed the land to the partnership at formation when its FMV and basis were both equal. He has a basis in the partnership of $40,000 at year end, without taking into consideration the effects of the distribution. Calculate the following:
a. Partnership XYZ's recognized gain (loss)
b. Bob's taxable gain (income)
c. Bob's basis in the property
d. Bob's basis in the partnership
Business
1 answer:
andrezito [222]3 years ago
4 0

Answer:

a. Partnership XYZ's recognized gain (loss)

  • recognized gain = fair market value - basis = $180,000 - $50,000 = $130,000

b. Bob's taxable gain (income)

  • Bob's taxable income = $130,000 x 50% = $65,000

c. Bob's basis in the property

  • Bob's new basis = $180,00 x 50% = $90,000

d. Bob's basis in the partnership

  • Bob's basis in the partnership = $40,000 + $65,000 = $105,000

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Answer:

1. $90,000

2. $5,000

3. $20,000

Explanation:

1. Calculation to Determine the Total current assets

First step is to calculate the Total current liabilities using this formula

Total current liabilities=Accounts payable + Wages payable + Accrued Interest

Let plug in the formula

Total current liabilities=$44,000 + $15,000 + $1,000

Total current liabilities= $60,000

Now let calculate the Total current assets using ratio 1.5

Total current assets =1.5 × $60,000 x 1.5

Total current assets=$90,000

Therefore the Total current assets will be 90,000

2. Calculation to Determine the Short term investments using this formula

Short term investments=Total current assets - Cash - Accounts receivable - Inventories

Let plug in the formula

Short term investments=$90,000 - $5,000 - $20,000 - $60,000

Short term investments= $5,000

Therefore the Short term investments will be $5,000

3. Calculation to Determine the Retained earnings

First step is to calculate the Total Assets

Cash and cash equivalents $5,000

Add Accounts receivable (net) $20,000

Add Inventories $60,000

Add Short term investments $5,000

Add Property, plant, and equipment (net) 120,000

TOTAL ASSETS $210,000

Now let calculate the Retained Earnings

Total Assets $210,000

Less Accounts payable ($44,000)

Less Salaries payable ($15,000)

LessAccrued interest ($1,000)

Less Notes payable ($30,000)

Less Paid-in capital ($100,000)

RETAINED EARNINGS $20,000

Therefore the Retained Earnings will be $20,000

4 0
2 years ago
Which of the following items does not result in an adjustment in the merchandiseinventory account under a perpetual system?
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Answer:

c.Payment of freight costs for goods shipped to a customer

Explanation:

In the inventory account management using the perpetual system, whenever there is an event that may result in a change in the carrying value of inventory, the quantity of the change is immediately determined and adjusting entries are posted.

Examples of such events include purchase of merchandise inventory, return of merchandise inventory to the supplier, .Payment of freight costs for goods received from a supplier (this forms part of the cost of inventory).

From the options given, the only entry that will not result in an adjustment to inventory is c.Payment of freight costs for goods shipped to a customer. This will form part of the selling and distribution cost under operating expenses.

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Dave has forty acres where he grows corn and soybeans. He also has five milk cows and some chickens. Dave sells organic milk and
I am Lyosha [343]
He has 20
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3 years ago
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve
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Answer:

PLAN A:

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PLAN B:

(120 * 0.49) + (40 * 0.14) + 20 = $84.40

PLAN C:

$20 + $75 = $95 ;

PLAN A is optimal from 0 to 192 minutes

PLAN C is optimal from 192 minutes onward ;

Explanation:

PLAN A :

Service charge = $20

Daytime = $0.39 per minute

Evening = $0.19 per minute

PLAN B :

Service charge = $20

Daytime = $0.49 per minute

Evening = $0.14 per minute

PLAN C :

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225 minutes = $75

Minutes beyond 225 = $0.36 per minute

A.)

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PLAN A:

(120 * 0.39) + (40 * 0.19) + 20 = $74.40

PLAN B:

(120 * 0.49) + (40 * 0.14) + 20 = $84.40

PLAN C:

$20 + $75 = $95

b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal?

PLAN A:

20 + 0.39D = 95

0.39D = 95 - 20

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D = 192.31

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3 years ago
Which statement or statements apply to a bond which is selling at a premium? I. The market value exceeds the par value. II. The
kherson [118]

Answer:

Its A

Explanation:

I took the test

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2 years ago
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