The Whitewater LLP is equally owned by three partners ar shows the following balance sheet at the end of the curren year. Basis FMV Cash S60,000 $6,000 Unrealized receivables Land -0- 15,000 15,000 $75,000 $25,000 45,000 $120,000 $ 40,000 40,000 40,000 $120,000 Petula, capital Prudence, capital Primrose, capital 25,000 25,000 $75,000
The Whitewater LLP is equally owned by three partners ar shows the following balance sheet at the end of the curren year. Basis FMV Cash S60,000 $6,000 Unrealized receivables Land -0- 15,000 15,000 $75,000 $25,000 45,000 $120,000 $ 40,000 40,000 40,000 $120,000 Petula, capital Prudence, capital Primrose, capital 25,000 25,000 $75,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 44P
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See the attached image. I need help with b)
Transcribed Image Text:The Whitewater LLP is equally owned by three partners and
shows the following balance sheet at the end of the current tax
year.
Basis
FMV
Cash
S60,000
$ 60,000
Unrealized receivables
-0-
15,000
Land
15,000
S75,000
45,000
$120,000
$ 40,000
Petula, capital
Prudence, capital
Primrose, capital
$25,000
25,000
40,000
25,000
$75,000
40,000
$120,000
Partner Petula is an active (i.e., "general") partner retiring from
the service-oriented partnership. She receives $60,000 cash, none
of which is stated to be for goodwill.
a. How much of the payment is for "unstated goodwill"?
b. How is the $60,000 allocated between a § 736(a) income
payment and a § 736(b) property payment?
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