partnership of $18,000. Lou's basis in the land after the distribution is: a. $35,000 C. $25,000 b. $18,000 d. $0 18. Refer to the preceding question. Lou's basis in his partnership interest after the distribution is: a. $35,000 C. $10,000 b. $17,000 d. $18,000
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- (9) In a liquidating distribution Christine Chapel receives cash of $35,000 and land, which the partnership had a basis of $75,000 and FMV of $98,667. Christine's basis in her interest is $115,000. (a) What is her gain or loss on the distribution? What is her basis in the land? (b)Ma1. Morgan and Kristen formed an equal partnership on August 1 of the current year. Morgan contributed $60,000 cash and land with a basis of $18,000 and a fair market value of $40,000. Kristen contributed equipment with a basis of $42,000 and a value of $100,000. Calculate Morgan and Kristen’s basis in the property.Ahmed and Salim form a partnership on June 1. Ahmed contributes OMR 15,000 cash, inventory with a market value of OMR 40,000 , and Accounts Payable of OMR 80,000. Ahmed also contributed computer equipment with a cost of OMR 80,000 and accumulated depreciation of OMR 20,000 . Current market value is OMR 85,000 Ahmed's Capital will be Select one: O a. Credit, 30,000 O b. Credit, 60,000 O c. Debit, 30,000 O d. Debit, 60,000
- Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $6,200 and a fair market value of $10,000. Kelsey will invest a building with a book value of $32,300 and a fair market value of $60,900. What amount will be recorded to Kelsey's capital account? Oa. $10,000 Ob. $32,300 Oc. $60,900 O d. $6,200Required Information (The following information applies to the questions displayed below.) Asron, Deonne, snd Keon formed the Blue Bell General Portnership et the beginning of the current yeor. Asron and Deanne each contributed $112,000 end Keon transferred en scre of undeveloped lend to the partnership. The land hod a tax basis of $68,000 and was apprsised st $180,000. The land was olso encumbered with e $68,000 nonrecourse mortgoge for which no one was personally liable. All three pertners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6.600 principal payment on the mortgage. For the first yesr of operations, the partnership records disclosed the following information: Sales revenue $ 488, eee Cost of goods sold Operating expenses Long-tern capital gains 51211 gains Charitable contributions 468, 020 43, 020 1, 58e 6ee Municipal bond interest Salary paid as a guaranteed paynent to Dcanne (not included in expenses) 3,0e0 a. Compute the…partnership for $34,000. Prior to the investment, land was revalued to a market value of $130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net income equally. Leighton had a capital balance of $36,000 prior to these transactions. a. Provide the journal entry for the revaluation of land. b. Provide the journal entry to admit Roberts. 96 PE 12-3B Revaluing and contributing assets to a partnership OBJ. 3 Demarco Lee invested $60,000 in the Camden and Sayler partnership for ownership equity of $60,000. Prior to the investment, equipment was revalued to a market value of $39,000 from a book value of $30,000. Kevin Camden and Chloe Sayler share net income in a 2:1 ratio. a. Provide the journal entry for the revaluation of equipment. b. Provide the journal entry to admit Lee. 598 PE 12-4A Partner bonus OBJ. 3 Gomez has a capital balance of $240,000 after adjusting assets to fair market value. Banks contributes $380,000 to receive a 60% interest in a new partnership…
- C. Shelton contributed land, inventory and $58,000 cash to a partnership. The land had a book value of $20,000 and a market value of $48,000. The inventory had a book value of $50,000 and a market value of $45,000. In the journal entry to record Shelton's contribution to the partnership, what account should be credited and for what amount? JOURNAL Date Description P.Ref DEBIT CREDIT Cash Inventory Land (?) (?) Group of answer choices Cash credited for $128,000 C. Shelton, Capital credited for $151,000 C. Shelton, Capital credited for $128,000 none of the above answers are correctRequired: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?Blossom, Bubbles and Buttercup formed a partnership to which Blossom contributed a parcel of land with an acquisition cost of P 25,000. Bubbles contributed P50,000 cash and Buttercup P 75,000 cash. The land has a fair value of P 50,000 at the formation date. The total capital credit of the partnership should be * a. P 150,000 b. P 125,000 c. P 175,000 d. P 145,000
- Mighty Darrel and Super Zigg formed a partnership and agreed to have an equal interest in thepartnership’s assets. They agreed to make the following contributions : Darrel contributed 100,000and Zigg contributed 84,000 in identifiable assets. Under the bonus approach, what is the amount ofbonus from Darrel to Zigg capital? A. 46,000B. 16,000C. 8,000D. 0Items 34 and 35 are based on the following information: On January 2,2010, Jason and Melissa formed a partnership by contributing the following assets: Cash Accounts Receivable Merchandise Inventory Land Building Jason P ? 80,000 100,000 Melissa 34. On January 2, 2010, Melissa, Capital amounts to a. P440,000 b. P600,000 P 380,000 240,000 The Land invested by Melissa is subject to mortgage loan of P160,000, which is to be assumed by the partnership. The accounts receivable invested by Jayson are believed to be only 90% collectible. d. P1,040,000 35. Assuming that Jayson is to contribute enough cash to bring his capital equal to that of Melissa, required cash contribution of Jayson is a. P268,000 b. P420,000 d. P600,000 c. P760,000 c. P440,000Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.