What is Sal's basis at the sale date What is the gain realized by Sal_ What is the gain recognized by Sal_
What is Sal's basis at the sale date What is the gain realized by Sal_ What is the gain recognized by Sal_
Chapter21: Partnerships
Section: Chapter Questions
Problem 25CE
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Transcribed Image Text:on June 30 of the current tax year, Sal sells her 40% interest in the STU Partnership to new partner
James for $300,000, including Sal's share of partnership liabilities. At the beginning of the tax yeal, San
Dasis in her partnership interest was $80,000 (excluding her share of partnership debt). The partnership
reported income of $240,000 for the vear, and Sal's share of partnership debt was $100,000 at the sale
date. (Assume the partnership uses a monthly proration of income.) At the sale date, the partnership s
assets consist of cash ($390,000), land (basis of $180.000, fair market value of $210,000), and unrealized
receivables (basis of $0, fair market value of $150,000).
What is Sal's basis at the sale date
What is the gain realized by Sal
What is the gain recognized by Sal_
If any gain is recognized by Sal, what is the character of the gain.
*If no gain is recognized by Sal, write N/A
What is James's basis in the partnership interest
What is the gain/loss realized by the Partnership
What is the gain/loss recognized by the Partnership.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT