Reference no: EM132988829
Question - Three individuals want to start a catering company and to operate it as an LLC, which will receive partnership tax treatment as the default for tax purposes. Chen contributes a van for transporting the food with a fair market value of $32,000 and an adjusted tax basis of $29,000 for 25 percent profits and capital interest. Bo contributes a bakery shop with a fair market value of $230,000 and an adjusted tax basis of $175,000 for 50 percent profits and capital interest. Jing contributes $60,000 in cash for 25 percent profits and capital interest. The LLC does not have any debt (either from the partners or that it takes on directly from a bank). Chen owned and contributed had a $10,000 car loan on it that used the van as collateral (where the creditor could not come after Chen or any of the other partners beyond the collateral or profits in the business).
a-i) Assume Rebecca opts to ask for an additional 10% profits interest (taking 5% away from Tammy and 5% from Miriam). The amount of income (or deduction) recognized by Tammy is $_______.
a-ii) Assume Rebecca opts to ask for an additional 10% profits interest (taking 5% away from Tammy and 5% from Miriam). The amount of income (or deduction) recognized by Rebecca is $_______.
a-iii) Assume Rebecca opts to ask for an additional 10% profits interest (taking 5% away from Tammy and 5% from Miriam). The amount of income (or deduction) recognized by Miriam is $_______.
b-i) Continuing from part a., how much would Rebecca's service in exchange for profits interest change each partner's outside tax basis (if at all)? If there is change, make sure it is clear whether the change is positive (increases outside tax basis) or negative (decreases outside tax basis). Tammy's outside tax basis would change by $_______.
b-ii) Continuing from part a., how much would Rebecca's service in exchange for profits interest change each partner's outside tax basis (if at all)? If there is change, make sure it is clear whether the change is positive (increases outside tax basis) or negative (decreases outside tax basis). Rebecca's outside tax basis would change by $_______.
b-iii) Continuing from part a., how much would Rebecca's service in exchange for profits interest change each partner's outside tax basis (if at all)? If there is change, make sure it is clear whether the change is positive (increases outside tax basis) or negative (decreases outside tax basis). Miriam's outside tax basis would change by $_______.
|
Make the journal entry to apply factory overhead
: The machine hours for the month of April for all of the jobs were 5,300. Make the journal entry to apply factory overhead
|
|
Determine the optimal production mix for the company
: Given that the profit per chair is 50 and that of a desk is 100, determine the optimal production mix for the company
|
|
Security threats and best practices
: Explain the security implications For each of the following terms: Of the cloud, Software definition network (SDN) , Internet of things(IoT), and NFV.
|
|
How much net income would they have recorded
: If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May
|
|
How much would rebecca service in exchange
: How much would Rebecca's service in exchange for profits interest change each partner's outside tax basis (if at all)
|
|
Enjoy the most about learning sql
: Explain SQL and its functions. What do you enjoy the most about learning SQL? What you find the most difficult?
|
|
Reflect on new levels of understanding-skills
: It is important to reflect on new levels of understanding, skills, and knowledge that you developed as a result of your efforts throughout this course.
|
|
What is regression testing
: Explain the tasks and concepts you completed in this labs. What is regression testing? How does it work, and why is it important?
|
|
Database systems
: As your study in database systems ends, it is important to reflect on new levels of understanding, skills, and knowledge
|