Calculate the basis of stephanie partnership interest

Assignment Help Accounting Basics
Reference no: EM131752572

Question - In the current year, Stephanie formed an equal partnership with Jane. Stephanie contributed land with an adjusted basis of $250,000 and a fair market value of $350,000. Stephanie also contributed $100,000 cash to the partnership. Jane contributed land with an adjusted basis of $150,000 and a fair market value of $200,000. The land contributed by Stephanie was encumbered by a $250,000 nonrecourse debt. Assume the partners share debt equally. Immediately after the formation, the basis of Stephanie's partnership interest is:

a. $0.

b. $225,000.

c. $300,000.

d. $325,000.

e. None of the above.

Reference no: EM131752572

Questions Cloud

Identify the issue you are examiningand discuss : Choose a topic related to any area of Bioethics study and write a paper.Identify the issue you are examiningand discuss any and all-relevant.
Distinguishing between variable and fixed costs : Explain the importance of distinguishing between variable and fixed costs.
Measure and record the purchase of a fixed asset : On October 1, 2011, Atherton Fuel Corp. purchased new equipment from Acme Equipment Company that had a purchase price (including sales tax) of $76,245.
Estimate of the total direct labor hours : To compute the predetermined overhead rate, Cristin divided her estimate of the total manufacturing overhead for the coming year
Calculate the basis of stephanie partnership interest : Assume the partners share debt equally. Immediately after the formation, the basis of Stephanie's partnership interest is
What was the cost of the machine : The present value of an ordinary annuity of 1 for five periods is 3.79079. What was the cost of the machine
Estimate all the parameters in a system : In a simultaneous equations framework, why cannot we always consistently estimate all the parameters in a system?
Compare the profit under cournot and monopoly : Compare the profit under Cournot and monopoly. Which market would you rather operate in?
Compute the annual gross profit for the peanut division : Plains Peanut Butter Company recently acquired a peanut-processing company that has a normal annual capacity of 3,000,000 pounds.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Sam smith invested 17000 in anchor insurance company at the

sam smith invested 17000 in anchor insurance company. at the endof the year smiths investment was worth 19500 becasue

  Enhance knowledge of organizational

Critically evaluate information from core business functions and the value chain to enhance knowledge of organizational strategic position and direction.

  Overhead on the basis of direct labour cost

Juanita corporation uses a job-order cost system and applies overhead on the basis of direct labour cost. At the end of october, Juanita had one job still in process. The job cost sheet for this job contained the following info:

  Research one publicly traded company

Research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases

  Foam pet mattress company can sell as many pet bed models a

foam pet mattress company can sell as many pet bed models a and b that it can produce but the company has limited

  Helen needs materials for her building business she

helen needs materials for her building business. she estimates her usage for the next four month will be 62700 in

  Prepare a bank reconciliation for cruz company

Cruz Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011.

  Is granger stokes using budgets as a planning and control

Is Granger Stokes using budgets as a planning and control tool?

  Management is concerned about profitability of steaks

Recast the preceding income statements in a format that provides more information in making this decision regarding the steaks product line.

  Compute the contribution margin

A recent income statement for Volkswagen reports the following (in € millions). Assume 70 percent of the cost of sales and 70 percent of the selling.

  Matthias motors inc has cash flows from operating

matthias motors inc. has cash flows from operating activities of 900000. cash flows used for investments in property

  How should mask account for the purchase and sale

How should Mask account for the purchase and sale of the treasury stock, and how should the treasury stock be presented in the balance sheet at December 31, 2010?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd