Required information [The following information applies to the questions displayed below.] The Taurin Partnership (a calendar-year-end entiy) has the following assets as of December 31 of the current year. Tax Basis $ 45,000 15,00e 81,000 $ 45,000 30, eee 120, 000 $ 195,000 Cash Accounts receivable Inventory Totals $ 141,000 On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts receivable, and $40,000 (FMV) of Inventory to Emma (a one-third partner) in termination of her partnership Interest. Emma's basis in her partnership Interest Immediately prior to the distribution Is $40,000. c1. IF Emma's basis before the distribution was $55,000 rather than $40,000, what Is Emma's recognized gain or loss? c2 What is her basis in the distributed assets? Complete this question by entering your answers in the tabs below. Reg Ci Reg C2 What is her basis in the distributed assets? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Basis Cash 15.000 Accounts receivable Inventory < Req C1 Reg C2
Required information [The following information applies to the questions displayed below.] The Taurin Partnership (a calendar-year-end entiy) has the following assets as of December 31 of the current year. Tax Basis $ 45,000 15,00e 81,000 $ 45,000 30, eee 120, 000 $ 195,000 Cash Accounts receivable Inventory Totals $ 141,000 On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts receivable, and $40,000 (FMV) of Inventory to Emma (a one-third partner) in termination of her partnership Interest. Emma's basis in her partnership Interest Immediately prior to the distribution Is $40,000. c1. IF Emma's basis before the distribution was $55,000 rather than $40,000, what Is Emma's recognized gain or loss? c2 What is her basis in the distributed assets? Complete this question by entering your answers in the tabs below. Reg Ci Reg C2 What is her basis in the distributed assets? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Basis Cash 15.000 Accounts receivable Inventory < Req C1 Reg C2
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
![Required Information
[The following information applies to the questions displayed below.]
The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year:
Tax Basis
$ 45,000
15,000
FMV
$ 45,008
30,e00
Cash
Accounts receivable
Inventory
81,800
120,000
$ 195,e00
Totals
$ 141,800
On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts recelvable, and $40,000 (FMV) of
Inventory to Emma (a one-third partner) In termination of her partnership Interest. Emma's basis in her partnership Interest
Immediately prior to the distribution is $40,000.
c1. If Emma's basis before the distribution was $55,000 rather than $40,000, what Is Emma's recognized galn or loss?
c2 What is her basis in the distributed assets?
Complete this question by entering your answers in the tabs below.
Req C1
Req C2
What is her basis in the distributed assets? (Do not round intermediate calculations. Round your final answers to the nearest
whole dollar amount.)
Basis
Cash
15,000
Accounts receivable
Inventory
< Req C1
Req C2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f1cf787-d181-4611-9f83-a587357d56a8%2F8ee71314-04d1-48bb-9172-a315298010f3%2F5fqoomk_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year:
Tax Basis
$ 45,000
15,000
FMV
$ 45,008
30,e00
Cash
Accounts receivable
Inventory
81,800
120,000
$ 195,e00
Totals
$ 141,800
On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts recelvable, and $40,000 (FMV) of
Inventory to Emma (a one-third partner) In termination of her partnership Interest. Emma's basis in her partnership Interest
Immediately prior to the distribution is $40,000.
c1. If Emma's basis before the distribution was $55,000 rather than $40,000, what Is Emma's recognized galn or loss?
c2 What is her basis in the distributed assets?
Complete this question by entering your answers in the tabs below.
Req C1
Req C2
What is her basis in the distributed assets? (Do not round intermediate calculations. Round your final answers to the nearest
whole dollar amount.)
Basis
Cash
15,000
Accounts receivable
Inventory
< Req C1
Req C2 >
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