Reference no: EM132842395
ABC Corporation and Billy form a general partnership. ABC contributes a building with a fair market value of? $ 1,000,000 and a tax basis of? $100,000. The partnership also assumes a recourse liability of? $400,000. ABC receives a 60? % interest in partnership capital and profits. Billy contributes inventory with a fair market value of? $400,000 and a tax basis of ? $100,000 for a 40? % interest in partnership capital and profits.
Problem 1: What gain or loss must ABC and Billy recognize as a result of these transactions??
A. ABC recognizes? $ 900,000? gain, Billy recognizes? $300,000 gain
B. Neither partner recognizes any gain or loss.
C. ABC recognizes? $60,000 gain? , Billy recognizes no gain or loss.
D. ABC recognizes? $300,000 gain, Billy recognizes no gain or loss.
|
Determine a transfer price
: The Consumer Division incurs variable costs of $260 in addition to the transfer price for the Industry Division's components. Determine a transfer price
|
|
What amount of capital gain to pam
: On June 30, 2020, RRR sells the land for? $2,100,000. As a result?, RRR will allocate what amount of capital gain to Pam in 2020??
|
|
What gain must recognize and what is basis in the? land
: As a result of this liquidating distribution what gain must recognize and what is her basis in the? land? Francine has basis in general partnership interest.
|
|
Calculate the amount payable by Mel Inc
: Mel Inc, a US based company is importing supplies worth €12 million from an Italian company. Calculate the amount payable by Mel Inc
|
|
What gain or loss must abc and billy recognize as a result
: What gain or loss must ABC and Billy recognize as a result of these transactions?? ABC Corporation and Billy form a general partnership.
|
|
What is? Pete tax basis in ABC?
: bond interest?, paid an EPA fine of? $300,000 and recognized a? $20,000 long term capital loss . At the end of 2019?, what is? Pete's tax basis in ABC??
|
|
Compute the rate of return earned
: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line
|
|
Development of international organisational policy
: Critically assess the roles of religion, political structures, cultural norms, ethnicity, ethos, the concept of 'the State', business and economic models and gl
|
|
What is brian basis in the orange corporation stock
: What is Brian's basis in the Orange Corporation stock? Brian contributed a building with a basis of $200,000 and a FMV of $400,000 in a Section 351 transaction.
|