Reference no: EM133118666
Question - Zack, Yasmine, and Xavier form a general partnership (ZYX) by contributing the following property in exchange for equal 1/3rd interests in the partnership:
Zack contributes GreenAcre, a capital asset Allie acquired 4 years ago, worth $1000. Zack has a tax basis of $400 in GreenAcre.
Yasmine contributes inventory with a basis of $300 and a value of $600, plus $400 in cash.
Xavier contributes stock with a value of $700 and cash of $300. Xavier has a basis of $400 in the stock.
Required -
1. What gain and/or loss will be recognized by the partner and the partnership on formation?
2. Construct an opening balance sheet for the ZYX partnership.
3. What will be the partnership's "inside basis" for the contributed property?
4. What will be the partners' "outside bases" be?
|
What is the current yield
: Suppose, two years ago, you purchased a 10-year coupon bond paying 4.5% interest annually with a face value of $1000. It is now two years later and you just rec
|
|
What is the unit cost of product m
: Additional costs after split off (P3,000; P2,000; P5,000); Quantity Sold (1,200; 2,000; 800). Using the net realizable value, what is the unit cost of Product M
|
|
Operational risk and enterprise risk management
: Think about operational risk and enterprise risk management (ERM) associated with financial institutions especially banks. Are these principles/rules applicable
|
|
The impact of the humanities
: How can the perspective of the humanities have a positive impact on your current or future professional career?
|
|
Construct an opening balance sheet for the zyx partnership
: Zack contributes GreenAcre, a capital asset Allie acquired 4 years ago, worth $1000. Construct an opening balance sheet for the ZYX partnership
|
|
Receiving the dividend payment
: If you bought the stock now and sold it for $55 two years later after receiving the dividend payment, what rate of return would you earn?
|
|
Determine each partner outside basis in the partnership
: Leah, Jabba, and Bobba each contribute $125,000 cash in exchange for their 1/4th general partnership interest. Determine each partner outside basis
|
|
What market price per share should be
: C Company will pay a dividend of $3.50 a share next year. After this, earnings and dividends are expected to grow at a 6% annual rate indefinitely. Investors cu
|
|
Determine each partner outside basis and book capital
: Drake has a book capital account of $600,000. Determine each partner's outside basis and book capital accounts at the end of the tax year
|