Acc 401 Week 5

764 WordsJul 1, 20134 Pages
401 Week 5 Assignment ACC401/Federal Income Taxes Instructor: Jacob Burdick February 16, 2013 Ch.14 48. A partner contributes property to a partnership; the basis of the property carries over to the partnership (outside basis). This concept is known as basis –in, basis –out. So, Denise’s beginning basis should be: Basis Cash $ 20,000 Office equipment $ 5,000 Auto $ 6,000 Partnership Basis $ 31,000 49. A. what is Patti’s basis in her partnership interest? The basis for her partnership interest will be $45,000. B. What is Patti’s holding period of her partnership interest? The holding period of the partnership interest includes the partner’s holding period for the 1232 assets contributed. The…show more content…
$9,900, which $8,200 carries over plus $1,700 gain recognized. D. Contribution of a building with a FMV of $200,000, a mortgage (assumed by the corporation) of $100,000, and a basis of $125,000. $125,000 is no gain to the shareholder because the debt relief is not in excess of basis. E. Contribution of a building with a FMV of $1,700,000, a mortgage (assumed by the corporation) of $1,000,000, and a basis of $635,000. $1,000, 000, which $635,000 carry over plus $365,000 gain

More about Acc 401 Week 5

Open Document