Reference no: EM132648468
Problem - In each of the following independent liquidating distributions in which the partnership also liquidates, prepare a Microsoft Excel spreadsheet to determine the amount and character of any gain or loss to be recognized by each partner and the basis of each asset (other than cash) received. In each case, assume that distributions of hot assets are proportionate to the partners. You can use the format in Concept Summary 11.2, or you can create your own. In either case, be sure you can explain your rationale.
a. Landon has a partnership basis of $40,000 and receives a distribution of $50,000 in cash.
b. Mark has a partnership basis of $50,000 and receives $20,000 cash and a capital asset with a basis to the partnership of $25,000 and a fair market value of $40,000.
c. Neil has a partnership basis of $100,000 and receives $40,000 cash, inventory with a basis to the partnership of $30,000, and a capital asset with a partnership basis of $20,000. The inventory and capital asset have fair market values of $20,000 and $30,000, respectively.
d. Oscar has a partnership basis of $40,000 and receives a distribution of $10,000 cash and an account receivable with a basis of $0 to the partnership (value is $15,000).
|
What basis will Jerome take in the inventory and land
: How much gain or loss, if any, must Jerome recognize as a result of the distribution? What basis will Jerome take in the inventory and land
|
|
Explain how gdss can increase some benefits of collaboration
: Explain how GDSS can increase some benefits of collaboration and decision making in groups and eliminate or reduce some losses.
|
|
Does que recognize gain on the swap
: Que's mortgage of $4,000 is assumed and Que receives land worth $26,000. Does Que recognize gain on the swap and if so, how much is it?
|
|
How much if any gain does que realize on the swap
: Que trades that land for a new piece of land worth $26,000. The other party buyer assumes Que's mortgage. How much if any gain does Que realize on the swap?
|
|
Determine the amount and character of any gain or loss
: prepare a Microsoft Excel spreadsheet to determine the amount and character of any gain or loss to be recognized by each partner
|
|
What is isaac holding period in the new land he receives
: What is Isaac's holding period in the new land he receives? Three years later he trades the land to Isadore for a piece of land worth $26,000.
|
|
What is isaac adjusted basis in the new property receive
: Isadore for a piece of land worth $26,000. Isaac holds the new land as an investment. What is Isaac's adjusted basis in the new property he receives?
|
|
Does isaac recognize a gain on the swap of the land
: Does Isaac recognize a gain on the swap of the land and if so how much is it? Isaac buys a piece of land as an investment, paying $20,000.
|
|
Does isaac realize a gain on the swap of the lland
: Does Isaac realize a gain on the swap of the lland, and if so how much gain is realized? Isaac buys a piece of land as an investment, paying $20,000.
|