Compare the reporting of this transaction on the tax

Assignment Help Accounting Basics
Reference no: EM13550717

My clients, Lisa and Matthew, plan to form Lima General Partnership. Lisa will contribute $50,000.00 cash to Lima for a 50% interest in capital and profits. Matthew will contribute land having a $35,000.00 adjusted basis and a $50,000.00 FMV to
Lima for the remaining 50% interest in capital and profits. Lima will borrow additional funds of $100,000.00 from a bank on a recourse basis and then will subdivide and sell the land. Prepare a draft memorandum for your tax managers signature outlining the tax treatment for the partnership formation transaction. As part of your memorandum, compare the reporting of this transaction on the tax and financial accounting books. References: IRS Sec. 271 & Accounting Standards Codification (ASC) 845 (Nonmonetary Transactions)

Reference no: EM13550717

Questions Cloud

Find the tension force in the cable : A 415.00kg elevator accelerates upward at 5.00m/s2 , pulled by a cable of negligible mass. Find the tension force in the cable
Define electron configuration : Predict the common charges of the ions of tin. Explain your reasoning in terms of electron configuration. Also, predict the highest possible charge of a zirconium ion. Explain your reasoning in terms of electron configuration.
How much of the property taxes may harry deduct : How much of the property taxes may Harry deduct?
Determine the dimensions of the derivative : Assume the equation x = At3 + Bt describes the motion of a particular object, Determine the dimensions of the derivative: dx/dt
Compare the reporting of this transaction on the tax : Compare the reporting of this transaction on the tax
Find the forces at the two supports : A 20 kg uniform beam is placed on two supporting stands on either end. A 75 kg painter stands at 1.2 m from one of the ends. find the forces at the two supports
Explain how many grams of h2 are formed : Magnesium metal reacts with HCl solution, liberating H2 gas and generating Mg2+ cations in solution. A 2.530-g sample of Mg metal is added to 50.0 mL of a 4.00 M HCl solution, and the reaction goes to completion. How many grams of H2 are formed
Determine the refractive index of the plastic : Using a fast-pulsed laser and electronic timing circuitry, you find that light travels a distance of 2.55m within a plastic rod in a time interval of 10.9ns. What is the refractive index of the plastic
What exactly does this deadweight loss represent : Calculate the annual deadweight loss to society due to drug firm's market power in Zatab. What exactly does this deadweight loss represent?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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