User Account

All Pages

Determine lindas total optional basis adjustment

Assignment Help Financial Accounting
Reference no: EM132833

Question :

Linda pays $100,000 cash for Jerry's ¼ interests in the JILL Partnership. The partnership has a Sec. 754 election effect. Just by the sale of Jerry's interest, JILL's balance sheet appears as given:

Partnership's Basis          FMV Assets:     

Cash      $75,000                $75,000

Land      $225,000             $325,000

Total      $300,000             $400,000

Partners' capital               

Jerry      $75,000                $100,000

Instrument Corp    $75,000      $100,000

Logo Corp      $75,000      $100,000

Lighthouse Corp               $75,000                $100,000

Total      $300,000             $400,000

a. Determine Linda's total optional basis adjustment?

b. If JILL Partnership sells the land for its $325,000 FMV instantly after Linda purchases her interest, how much profit or loss will the partnership recognize?

c. How much profit will Linda report as a result of the sale?

Reference no: EM132833

Questions Cloud

Evaluate janice morgans federal income tax payable : Evaluate Janice Morgans Federal income tax payable
Tourism area life cycle : Critically review any two of the following theories which have been used to study community attitudes towards tourism development. Use appropriate examples to illustrate your arguments Tourism Area Life Cycle
What is the reason of debriefing : What is the reason of debriefing
Determine the direct materials price and efficiency variance : Determine the direct materials price and efficiency variances for Shirt Company. Evaluate the direct labor price and efficiency variances for Shirt Company.
Determine lindas total optional basis adjustment : Determine Linda's total optional basis adjustment? How much profit will Linda report as a result of the sale?
Identify public private partnerships : Identify Public Private Partnerships
Evaluate the companys break-even point : Evaluate the company's break-even point in number of widebody passenger jets and in dollars of sales.
Describe how the accounting equation is impacted : Describe how the Accounting Equation is impacted
Examine influence of information technology : Examine influence of Information technology

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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