What is jennifers outside basis in the partnership

Reference no: EM133360291

Case: On March 15, 2019, Jennifer, Eliza, and Heather formed a cycling shop named SheSpoke Powell General Partnership. This partnership was created to sell a variety of bicycles and bicycle accessories. They also intend to service all makes and models of bikes. When it was formed, the partners received equal profits and capital interests, and the following items
were contributed by each partner:

Jennifer--cash of $3,000, inventory with an FMV and tax basis of $5,000, and a building with an FMV of $22,000 and adjusted basis of $10,000. Additionally, the building was secured by a $10,000 nonrecourse mortgage.

Eliza-cash of $5,000, accounts payable of $12,000 (recourse debt for which each partner becomes equally responsible), and land with an FMV of $27,000 and tax basis of $20,000.

Heather-cash of $2,000, accounts receivable with an FMV and tax basis of $1,000, and equipment with an FMV of $40,000 and adjusted basis of $3,500. Heather also contributed a $23,000 nonrecourse note payable secured by the equipment.
Use the following format for all answers: $1,234 if gain; ($1,234) if loss; or $0 if no gain or loss

Question 1. What is Jennifer's outside basis in the partnership?

Question 2. What amount of gain does Eliza recognize associated with her contribution of the land?

Question 3. How much gain will Heather recognize associated with her contribution of cash, accounts receivable and equipment?

Question 4. What is the partnership's inside basis of the equipment contributed by Heather?

Reference no: EM133360291

Questions Cloud

What types of performance measurements might affect : What types of information does AS No. 12 suggest the auditor should consider when obtaining an understanding of the company and its environment

Discuss the major importance of background and methods : Search and cite relevant literature and discuss the major importance of background and methods of the following trends in Cardiovascular Nursing Practice

What is elon musk leadership style : What is elon musk leadership style? If you become a leader, what leadership style will you apply? How can you develop a competance of each team member?

Who the organization serves : Who the organization serves Role the organization plays in providing oral health care Professional roles of the dental professional within the organization

What is jennifers outside basis in the partnership : Central State University What amount of gain does Eliza recognize associated with her contribution of the land and What is Jennifer's outside basis

What is your favourite food : What is your favourite food? Movie? Cartoon? Sport? Are you a sports fan? If yes, what team do you root for? What are your likes and dislikes?

Explain how the theory or model can be used as a framework : Review literature regarding issues or concerns within your selected area of advanced practice nursing. Select a theory or model which is relevant to your select

Identify potential positions in sport communication field : Identify two potential positions in the sport communication field, one of which you would like to pursue as a career.

Discuss two unintended consequences of hit on quality : Discuss two unintended consequences of HIT on quality and patient safety, and elaborate on potential solutions to mitigate these consequences.

User Account

All Pages