!Required informationProblem 10-55 (LO 10-1, LO 10-6) (Algo)[The following information applies to the questions displayed below.]Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany'sbasis in Westlake is $96,200. Westlake reports the following balance sheet:Таx BasisFMVAssetsCash$ 96, 200$ 96. 200Land192, 400434, 800Totals$ 288, 600$ 531, 000Liabilities and capitalCapital - AmyCapital-Brittany$ 96, 200$ 96, 200$ 96, 200$ 288, 600Сapital-BenTotals(Leave no answer blank. Enter zero if applicable.)Problem 10-55 Part d (Algo)d. How much gain or loss would Michelle recognize if the land were sold for $434,800?Recognized gain

In partnership, Michelle recognized the following profit. Land value tax bases = $192,400 Land Fair…

Required information Problem 10-55 (LO 10-1, LO 10-6) (Algo) [The following information applies to the questions displayed below.] Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,200. Westlake reports the following balance sheet: Таx Basis FMV Assets Cash Land $ 96, 200 $ 96, 200 192. 400 434, 800 Totals $ 288, 600 $ 531, 000 Liabilities and capital Capital - Amy Capital-Brittany Сapital-Ben $ 96, 200 $ 96, 200 $ 96, 200 $ 288, 600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 10-55 Part d (Algo) d. How much gain or loss would Michelle recognize if the land were sold for $434,800? Recognized gain

Required information Problem 10-55 (LO 10-1, LO 10-6) (Algo) [The following information applies to the questions displayed below.] Michelle pays $177,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,200. Westlake reports the following balance sheet: Таx Basis FMV Assets Cash Land $ 96, 200 $ 96, 200 192. 400 434, 800 Totals $ 288, 600 $ 531, 000 Liabilities and capital Capital - Amy Capital-Brittany Сapital-Ben $ 96, 200 $ 96, 200 $ 96, 200 $ 288, 600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 10-55 Part d (Algo) d. How much gain or loss would Michelle recognize if the land were sold for $434,800? Recognized gain

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter10: Partnership Taxation

Section: Chapter Questions

Problem 8MCQ

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Chani contributes equipment to a partnership that she purchased 2 years ago for $10,000. The current book value is $7,500 and the market value is $9,000. At what value should the partnership record the equipment? A. $10,000 B. $9,000 C. $7,500 D. none of the above
*E12-13B S. Heerey, E. Jenks, and N. Garland have capital balances of $60,000, $50,000, and $45,000, respectively. Their income ratios are 4 : 3 : 3. Garland withdraws from the partnership under each of the following independent conditions. 1. Heerey and Jenks agree to purchase Garland’s equity by paying $25,000 each from their personal assets. Each purchaser receives 50% of Garland’s equity. 2. Jenks agrees to purchase all of Garland’s equity by paying $33,000 cash from her personal assets. 3. Heerey agrees to purchase all of Garland’s equity by paying $38,000 cash from her personal assets. Instructions Journalize Garland’s withdrawal under each of the assumptions above.
Answer this please and also how does the salary for the 12thmonth in number 3 is 96000. Explain also thank you Problem #2 Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership suffered a loss of P50,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: Loss is agreed to be divided equally. There is no profit or loss sharing agreement. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner; and the balance divided equally.
#410 On September 30, 2021, Lopez admits Mendez for an interest in his business. On this date, Lopez's capital account showed a balance of P158,400. The following were agreed upon before the formation of the partnership: Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized 5% of the outstanding accounts receivable of Lopez amounting to P100,000 is to be recognized as uncollectibles. Mendez is to be credited with a one-third interest in the partnership and is to investment cash for that interest. How much cash should be invested by Mendez?
Cloe, Doe and Lida are partners with capital balances on December 31, 2021 of P300,000, P300,000 and P200,000 respectively. Profits are shared equally. Lida wishes to withdraw and it is agreed that she is to take certain furniture and fixtures with second hand value of P50,000 which are carried on the books at P65,000. Brand new, the furniture and fixtures may cost, P80,000. How much is the value of the note that Lida will get from the partnership’s liquidation?
Cen, Deng, and Lala are partners with capital balances on 31 December 2021 of P300, 000, P300, 000 and P200, 000, respectively. Profit are shared equally. Lala wishes to withdraw and it is agreed that she is to take certain furniture and fixtires with a second hand value ooof P50, 000 and note for the balance of her interest. The furniture and fixtures are carried in the books at P65, 000. Brand new, the furniture and fixtures may cost P80, 000. Lala’s acquisition of the second furniture will result to:
On January 1, 2021 David contributed $25,000 cash and building with a basis of $100,000 and a FMV of $165,000 in exchange for 50% interest in partnership XYZ LLC. XYZ had the following activty for 2021: Ordinary Income: $140,000 Operating expenses: $60,000 Interest Income: $10,000 Nondeductible Expenses: 5,000 What is David's outside basis in XYZ LLC on December 31, 2021? 232,500 170,000 167,500 210,000
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Moonboots Partnership had a net income of P8,000 for the month ended September 30, 2021. Sunshine purchased an interest in moonboots Partnership of Liz and Dick by paying Liz P32,000 for half of her capital and half of her 50% profit-sharing interest on October 1, 2021. At this time, Liz’s capital balance was P24,000 and Dick’s capital balance was P56,000. Sunshine should receive a credit to her capital balance of:
A partnership has gone through liquidation and now reports the following account balances: Cash . . . . . . . . . . . . . . . . . . . . . .$16,000Loan from Jones . . . . . . . . . . 3,000Wayman, capital . . . . (2,000) (deficit)Jones, capital . . . . . . . (5,000) (deficit)Fuller, capital . . . . . . . . . . . . . 13,000Rogers, capital . . . . . . . . . . . . 7,000 Profits and losses are allocated on the following basis: Wayman, 30 percent; Jones, 20 percent; Fuller, 30 percent; and Rogers, 20 percent. Which of the following events should occur now?a. Jones should receive $3,000 cash because of the loan balance.b. Fuller should receive $11,800 and Rogers $4,200.c. Fuller should receive $10,600 and Rogers $5,400.d. Jones should receive $3,000, Fuller $8,800, and Rogers $4,200.
1. On September 1, 20X2, Tanya, Cecille, and Marie formed a partnership by combining their separate business proprietorships. Tanya contributed cash of P50,000. Cecille contributed property with P48,000 carrying amount, P56,000 original cost, and P45,000 fair value. The said property has an attached mortgage of P10,000, which will be assumed by the partnership. Marie Contributed a piece of equipment with P50,000 carrying amount, P85,000 original cost, and P45,000 fair value. It was stated in the Articles of Partnership that profits and losses are to be shared equally but is silent regarding capital contributions. Who among the partners has the smallest capital contribution? Justify the answer in no more than five (5) sentences. 2. On July 1, 20X2, Cua, Wicas, and Suico organized a partnership. Wicas contributed cash amounting to P600,000 and Suico contributed cash of P300,000 and machinery with a carrying amount of P250,000, the historical cost of P600,000, and market value of…
1.On September 1, 20X2, Tanya, Cecille, and Marie formed a partnership by combining their separate business proprietorships. Tanya contributed cash of P50,000. Cecille contributed property with P48,000 carrying amount, P56,000 original cost, and P45,000 fair value. The said property has an attached mortgage of P10,000, which will be assumed by the partnership. Marie Contributed a piece of equipment with P50,000 carrying amount, P85,000 original cost, and P45,000 fair value. It was stated in the Articles of Partnership that profits and losses are to be shared equally but is silent regarding capital contributions. Who among the partners has the smallest capital contribution? Justify your answer in no more than five (5) sentences.2. On July 1, 20X2, Cua, Wicas, and Suico organized a partnership. Wicas contributed cash amounting to P600,000 and Cua contributed cash of P300,000 and machinery with a carrying amount of P250,000, the historical cost of P600,000, and market value of P475,000.…