Hi, can someone help me with this please? Exercise 10-24 (Algorithmic) (LO. 10)Jokan contributes a nondepreciable asset to the MahaliLLC in exchange for a one-fourth (25%) interest in theLLC's capital and profits and a 30% interest in the LLC'slosses. The asset has an adjusted tax basis to Jokan andthe LLC of $90,000 and a fair market value and § 704(b)"book" basis on the contribution date of $162,000. Theasset is encumbered by a nonrecourse note of $54,000that has not been guaranteed by any of the LLCmembers.How much of the nonrecourse debt is allocated to Jokan?What is the amount of Jokan's basis in the LLC interestfollowing the contribution?

Nondepreciable asset is the asset on which the deduction of depreciation is not applied.

Answered: Jokan contributes a nondepreciable…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 26CE

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LO.4, 7 In December 2019, Carl Corporation sold land it held as an investment. The corporation received 50,000 in 2019 and a note payable (with adequate interest) for 150,000 to be paid in 2021. Carl Corporations cost of the land was 80,000. The corporation has a 90,000 net capital loss carryover that will expire in 2019. Should Carl Corporation report the sale in 2019 or use the installment method to report the income as payments are received?
1. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC’s identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the year ended December 31, 202X, SC reported a profit of P3,000,000 but did not pay any dividends. Moreover, the fair value of SC’s land increases by P1,500,000. However, the carrying amount of the land remains unchanged at P3,000,000. Given below is the Statement of Financial Position (SFP) of SC, together with the fair values of the identifiable assets, at December 31, 202X: Carrying Amount Fair Value Cash and Receivables 4,000,000 4,000,000 Land 3,000,000 5,500,000…
(7) H Co acquires S Co for $1,040,000 when the balances of share capital and retained profits of S Co amount to respectively $450,000 and $360,000. S Co holds two properties which are depreciated over 10 years for both tax and accounting purposes, and will be recovered through use. The tax rate is 20%. The carrying amounts, fair values and tax bases of the net assets of S Co, and resulting temporary differences are shown below: All the timing differences are temporary differences. All the temporary differences are timing differences. If the differences between the carrying amount of an asset or liability and its tax base 2 Carrying Amount $ Fair Value $ Tax base $ Property 1 Property 2 Other net assets Total 320,000 390,000 400,000 420,000 90,000 90,000 810,000 900,000 300,000 450,000 90,000 840,000 According to the tax rules, the tax bases of the net assets of S Co are not changed when the net assets are acquired by H Co. What’s the amount of the goodwill? A.…

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