Cengagenowv2 For Whittenburg/altus-buller/gill's Income Tax Fundamentals 2020, 1 Term Printed Access Card
38th Edition
ISBN: 9780357107065
Author: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Publisher: Cengage Learning
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Question
Chapter 10, Problem 18MCQ
To determine
Introduction:
To choose: The situation in which the loss or gain from the transaction between partner and partnership is disallowed.
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Generally, gain is not recognized on contribution of appreciated property to a partnership. Which of the following situations may be an exception to that general rule?
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Question 1 options:
The contributing partner contributes appreciated property to the partnership and shortly after receives a large distribution of cash from the partnership so that most of the partner's interest in the partnership is liquidated. The exchange appears to essentially be a partial sale of the property through the partnership form.
The partner contributes appreciated property to a partnership and the partner is not in control of the partnership (over 50% ownership).
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A loss from the sale or exchange of property will be disallowed in which of the following situations? a. A transaction between a partnership and a partner who owns 40 percent of the partnership capital b. A transaction between a partnership and a partner who has a 40 percent profit in-terest in the partnership c. A transaction between two partnerships owned 80 percent by the same partners d. A transaction between two partners with investments in the same partnership e. None of the above
1. Which of the following statement is correct concerning liquidation of a partnership?
I. Assets must be liquidated solely through sale transaction
II. Assets can be sold at distress prices in a single transaction to an interested party
III. All assets can be sold at fair value in a single transaction to a competitor or to others who wish to continue the business.
[A] I only
[B] I and II only
[C] II and III only
[D] I, II and III
2. S1: Lump-sum liquidation refers to a series of interim distributions to partners while the sale of noncash assets and the payment of liabilities is occurring. S2: Installment liquidation refers to the sale of noncash assets and payment of liabilities before single distribution to partners.
[A] Both statements are correct
[B] Both statements are incorrect
[C] Only S1 is correct
[D] Only S1 is incorrect
Chapter 10 Solutions
Cengagenowv2 For Whittenburg/altus-buller/gill's Income Tax Fundamentals 2020, 1 Term Printed Access Card
Ch. 10 - Which of the following may not be treated as a...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQCh. 10 - Abigail contributes land with an adjusted basis of...Ch. 10 - Prob. 8MCQCh. 10 - Prob. 9MCQCh. 10 - Prob. 10MCQ
Ch. 10 - Prob. 11MCQCh. 10 - Prob. 12MCQCh. 10 - Prob. 13MCQCh. 10 - Prob. 14MCQCh. 10 - Prob. 15MCQCh. 10 - Prob. 16MCQCh. 10 - Kendra is an attorney and owns 60 percent of a law...Ch. 10 - Prob. 18MCQCh. 10 - In 2019, Gloria, a single taxpayer, receives a...Ch. 10 - Prob. 20MCQCh. 10 - Prob. 21MCQCh. 10 - Prob. 22MCQCh. 10 - Prob. 23MCQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16P
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