After-tax cash flow fro her partnership activity this year

Assignment Help Financial Accounting

Reference no: EM131289308

Kari is a partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000 and she received a cash distribution of $30,000. Kari's tax basis in her partnership interest at the beginning of the year was $50,000. Her marginal tax rate is 25%

A. Calculate the tax cost of Kari's partnership earnings this year.

B. computer Kari's after-tax cash flow fro her partnership activity this year.

C. Compute Kari's tax basis in her partnership interest at the ending of the year. Assume no change in her share of partnership liabilities during the year.

Reference no: EM131289308

Questions Cloud

Applying the cost of goods sold model : Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in stock at a cost of $9 each. During the year, Wilson purchased 850 more units at a cost of $9 each and sold 210 units at $13 each, 250 units at $15 each, and ..

Prepare journal entries for lamar related to the bonds : Lamar Corporation owns 60 percent of Humbolt Corporation’s voting shares. On January 1, 20X2, Lamar Corporation sold $185,000 par value, 8 percent first mortgage bonds to Humbolt for $191,000. The bonds mature in 10 years and pay interest semiannuall..

Prepare necessary adjusting journal entry for depreciation : A machine that cost $55,000 was purchased on January 1. The asset has an estimated useful life of four years and an estimated salvage value of $3,000. Prepare the necessary adjusting journal entry for Depreciation at the end of the year.

A bank statement provided by the bank includes : A bank statement provided by the bank includes:

After-tax cash flow fro her partnership activity this year : Kari is a partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000 and she received a cash distribution of $30,000. Kari's tax basis in her partnership interest at the beginning of the year was $50,000. Her mar..

This transaction and the basis of the replacement property : In January 2015, Dominos, LLC a calendar year taxpayer acquired a building for $2,000,000 (of which $400,000 was allocated to land) to convert it to a state of the art casino. What is Dominos Game Center, LLC’s deferred gain from this transaction and..

Prepare income statements for year using variable costing : Coswell Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2011, the first year of operations, Coswell produced 4,300 tons of plastic and sold 3,440 tons. In 2012, the production and sales resu..

Misrepresenting the overall budget for a particular movie : Movies are expensive to produce and market. According to IMDb, the most expensive film on record is Pirates of the Caribbean: At World’s End, with a total budget of $336 million. What reasons can a movie director have for misrepresenting the overall ..

Determine the amount of itemized deductions : B. J. and Carolyn Grace are full-time employees. B. J. is an elementary school teacher, and Carolyn is a registered nurse at a hospital. During the year, they incur the following employment-related expenses: School supplies for use in the classroom $..

User Account

All Pages