Describe the income tax consequences to ben

Assignment Help Accounting Basics
Reference no: EM132011022

Question - At the end of last year, Ben, a 40% partner in the four-person BBJR Partnership, has an outside basis of $50,000 in the partnership, including a $40,000 share of partnership debt. Ben's share of the partnership's § 1245 recapture potential is $25,000. All parties use the calendar year. Describe the income tax consequences to Ben in each of the following independent situations that take place in the current year:

a) On the first day of the tax year, Ben sells his partnership interest to Marilyn for $80,000 cash and the assumption by Marilyn of the appropriate share of partnership liabilities.

b) Ben dies after a lengthy illness on April 1of the current year. Ben's brother immediately takes Ben's place in the partnership.

Reference no: EM132011022

Questions Cloud

What were the physical and psychological traumas : What were the physical, cultural, and psychological traumas that West Africans were forced to endure during the Middle Passage?
Calculate how much can be earned on national principal : Describe the steps and calculate how much can be earned on a national principal amount of $100 million or its equivalent in GBP.
How did african culture shape the lives of blacks : How did African culture shape the lives of blacks throughout British colonies in North America?
How did the british benefit from african americans efforts : How did the British benefit from African Americans' efforts, and how were those African Americans compensated
Describe the income tax consequences to ben : Describe the income tax consequences to Ben in each of the following independent situations that take place in the current year
Company could form special purpose entity : A company could form a 'special purpose entity' (SPE)--under GAAP rules--to remove liabilities and assets off the company's financials
In what ways did african americans help the patriot : In what ways did African Americans help the patriot cause during the American Revolution?
Which of the given concepts would have been really helpful : Which of these concepts and skills you feel are going to be of greatest influence on your future. What would it have changed?
What is the total interest that the firm pays on the loan : At the end of which months would the loan be fully repaid? What is the total interest that the firm pays on the loan during its term?

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