At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW Partnership. KW reported the following income and expenses for the current tax year: Sales revenue: $700,000 1231 gain: $60,000 Long-term capital loss: $10,000 Qualified dividends: $10,000 W-2 wages paid to employees: $200,000 Utilities: $140,000 Rent: $180,000 No distributions were made this year. What is Kanye’s 704(b) book capital account balance at the end of the tax year?
At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW Partnership. KW reported the following income and expenses for the current tax year: Sales revenue: $700,000 1231 gain: $60,000 Long-term capital loss: $10,000 Qualified dividends: $10,000 W-2 wages paid to employees: $200,000 Utilities: $140,000 Rent: $180,000 No distributions were made this year. What is Kanye’s 704(b) book capital account balance at the end of the tax year?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW
- Sales revenue: $700,000
- 1231 gain: $60,000
- Long-term capital loss: $10,000
- Qualified dividends: $10,000
- W-2 wages paid to employees: $200,000
- Utilities: $140,000
- Rent: $180,000
No distributions were made this year.
What is Kanye’s 704(b) book capital account balance at the end of the tax year?
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