artnership is an equal partnership in which each of the partners has a basis in their partnership interest of O. Bella reports the following balance sheet: Tax Basis FMV $20,000 $30,000 10,000 15,000 $ 30,000 $ 45,000 ets entory d als bilities and ital ital-Toby ital-Kaelin ital-Andrew $ 10,000 10,000 10,000 $ 30,000 als ed: entify the hot assets if Toby decides to sell his partnership interest.
artnership is an equal partnership in which each of the partners has a basis in their partnership interest of O. Bella reports the following balance sheet: Tax Basis FMV $20,000 $30,000 10,000 15,000 $ 30,000 $ 45,000 ets entory d als bilities and ital ital-Toby ital-Kaelin ital-Andrew $ 10,000 10,000 10,000 $ 30,000 als ed: entify the hot assets if Toby decides to sell his partnership interest.
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
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Question
Transcribed Image Text:Bella Partnership is an equal partnership in which each of the partners has a basis in their partnership interest of
$10,000. Bella reports the following balance sheet:
Tax Basis
FMV
$ 20,000 $30,000
10,000 15,000
$ 30,000 $ 45,000
Assets
Inventory
Land
Totals
Liabilities and
capital
Capital-Toby
Capital-Kaelin
Capital-Andrew
Totals
Required:
$ 10,000
10,000
10,000
$ 30,000
a-1. Identify the hot assets if Toby decides to sell his partnership interest.
a-2. Are these assets "hot" for purposes of distributions?
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