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aliina [53]
3 years ago
5

Mark and Addison formed a partnership. Mark received a 25% interest in partnership capital and profits in exchange for land with

a basis of $40,000 and a fair market value of $60,000. Addison received a 75% interest in partnership capital and profits in exchange for $180,000 of cash. Three years after the contribution date, the land contributed by Mark is sold by the partnership to a third party for $76,000. How much taxable gain will Mark recognize from the sale
Business
1 answer:
nevsk [136]3 years ago
7 0

Answer:

$24,000

Explanation:

Calculation to determine How much taxable gain will Mark recognize from the sale

Mark allocated precontribution gain $20,000

($40,000-$60,000)

Add Post contribution gain $4,000

($60,000-$76,000*25%]

Taxable gain $24,000

($20,000+$4,000)

Therefore How much taxable gain will Mark recognize from the sale is $24,000

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Answer:

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Answer:

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3 years ago
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hope it helps:)

mark brainliest!

7 0
3 years ago
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Aleksandr [31]

Answer:

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3 years ago
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4 years ago
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