Reference no: EM13785754
1. Chris and Lauren each contributed $90,000 cash to the cash basis CL Partnership. The partnership uses all $180,000 of the cash to purchase a depreciable asset. The partnership agreement provides that depreciation is allocated 60% to Chris and 40% to Lauren. All other items of partnership income, gain, loss or deduction are allocated equally between the two partners. During the first year of operations, the partnership produces $30,000 of income before depreciation and deducts $30,000 of depreciation. At the end of the first year, the partnership sells the depreciable asset for its $150,000 book value. Following these transactions, the partnership has $180,000 of cash ($150,000 from sale of the asset and $30,000 from operations). assume nothing else happens in the first year that affects the partners and liquidates at the end of the first year.
a) How much cash is distributed to each partner in the liquidating distribution under the economic effect test?
b) if the partnership distributes $30,000 cash to Lauren on June 30 of the current year, how much cash is distributed to each partner in the liquidating distribution under the economic effect test?
2. 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.
Calculate the percentage changes in the outputs
: Calculate the percentage changes in the endowments - calculate the percentage changes in the outputs and show graphically a new production possibilities frontier.
|
Liquidating distribution under the economic effect test
: If the partnership distributes $30,000 cash to Lauren on June 30 of the current year, how much cash is distributed to each partner in the liquidating distribution under the economic effect test?
|
Idea of a permanent marriage is a realistic option
: Historian Eric Sager, commenting on the growing ranks of singles, points out, "It is often said that divorce today performs the function that death did in the past. The promise to live together for better or worse, so long as you both shall live, ..
|
Discuss what security policies commerce should implement
: For Reflective Article Paper 3, select an article that details current methods that are used to successfully prevent identity theft. Discuss what security policies commerce should implement to prevent it from happening.
|
Liquidating distribution under the economic effect test
: How much cash is distributed to each partner in the liquidating distribution under the economic effect test?
|
Short notes on federal policy
: Federal Policy.
|
Explain system recovery backups
: On the left side of the website, click the STIGs Master List (A to Z) link. Scroll down the list to locate and then download the following Windows OS security guideline documents/zip files
|
Calculate the ped for a particular style
: Calculate the PED for a particular style of Tom's shoes if there is a price decrease from $100 to $50 and the quantity demanded increases from 2500 to 10,000 pairs. (Use a diagram to help clarify your answer)
|
Discussion board change management models
: discussion board Change Management Models
|