Tec partners was formed during the current tax year

Reference no: EM13840007

TEC Partners was formed during the current tax year. It incurred $10,000 of organizational expenses, $80,000 of startup expenses, and $5,000 of transfer taxes to retitle property contributed by a partner. The property had been held as MACRS property for ten years by the contributing partner, and had an adjusted basis to the partner of $300,000 and fair market value of $400,000. Which of the following statements is correct regarding these items?

a. TEC's deducts the first $5,000 of startup expenses and amortizes the remainder over 180 months.

b. TEC treats the contributed property as a new MACRS asset placed in service on the date the property title is transferred.

c. TEC must capitalize the transfer tax and treat it as a new asset placed in service on the date the property is contributed.

d. TEC must amortize the $10,000 of organizational expenses over 180 months.

e. None of these statements are true.

Reference no: EM13840007

Questions Cloud

Perfectly competitive market described by the demand : Consider a perfectly competitive market described by the demand function P = 50 - 0.5Q and supply function P = 20 + 0.3Q. Suppose the market is initially in equilibrium. If the government intervenes in the market and imposes of a price restriction of..

Differentiating between market structures : Differentiating Between Market Structures

Is the budget deficit getting larger or smaller : What can you say about trends. Is the budget deficit getting larger or smaller. What about the national debt. Why are people so concerned about the size of the national debt

Draw context diagram data flow diagram for system described : Draw a context diagram data flow diagram for the system described above. The format should be similar to the context diagram in figure 5-13 of your textbook.

Tec partners was formed during the current tax year : TEC Partners was formed during the current tax year. It incurred $10,000 of organizational expenses, $80,000 of startup expenses, and $5,000 of transfer taxes to retitle property contributed by a partner. The property had been held as MACRS property ..

Probability of the state of nature : Based upon the following data, what is the expected value of perfect information, assuming the probability of the state of nature that favors location A occurring is 0.50, the probability of the state of nature that favors location B occurring is ..

Increase or decrease price elasticity : F8. Dr. Old requires that all services be paid for a time of treatment, in cash. If he decided to allow patients to pay with credit cards, will it increase or decrease price elasticity?It will increase price elasticity because more options of payment..

Explain the federal reserve to conduct monetary policy : What are the functions of the 12 Federal Reserve District Banks, which serve as "bankers' banks". List the tools used by the Federal Reserve to conduct monetary policy. How are the monetary tools used to stimulate the economy when unemployment is hig..

The world relative price of a cars : Now suppose the world relative price of a cars is Pc/Ptv=1. A) In what good will each country specialize? Briefly explain why. B) Graph the new world price line for each country in the figures in problem 4, and ass a new indifference curve (U2) for e..

User Account

All Pages