What is the partnerships basis in the assets contributed

Assignment Help Financial Accounting

Reference no: EM133396

Question :

Annie, Carla and Betty formed the ABC partnership. They contributed the subsequent assets.

Annie contributed cash of $20000 and services valued at $60000.

Betty contributed land with a basis of $50000 and FMV of $105000. Attached to the land is a mortgage of $40000 considering by the partnership. Betty received cash of $5000.

Carla contributed inventory with a basis of $10000 and FMV of $20000. She also contributed a building with a basis of $30000 and a FMV of $60000. Attached to the building is a mortgage of $20000 considered by the partnership.

Annie owns 40 percent of the partnership and Betty and Carla each own 30% of the partnership.

For each partner answer the subsequent;

How much is recognized profit?

How much is each partner's basis in the partnership?

What is the partnership's basis in the assets contributed?

Reference no: EM133396

Questions Cloud

Management accounting formats : Management accounting formats are identical for all companies

How to define the Escape Problem : How to define the Escape Problem

Determine and journalize the foreign exchange adjustments : Determine and journalize the foreign exchange adjustments for 2005, 2006 and 2007 for the Canadian subsidiary.

How would you propose the update to star topology : How would you propose the update to Star topology

What is the partnerships basis in the assets contributed : How much is recognized profit? How much is each partner's basis in the partnership? What is the partnership's basis in the assets contributed?

Demand and capacity : Process Layout, Product Layout, Fixed position Layout, shaping of business policy, key objective of the operations manager, managing both demand and capacity

Determine the amount of gross profit : Determine the amount of gross profit to be recognized in each of the three years. Prepare all required journal entries for each of the years (credit "Various accounts" for construction costs incurred). Purpose a partial balance sheet for 2009 a..

Recognize the described contributed services as revenue : A neurologist serves on the board of trustees of the Neurological Disease Foundation, an organization that funds clinical research. He was asked to serve due to his expertise in neurological research, and he chairs the committee of the board that ..

Strategies that should be adopted by tourism organisations : Examine the strategies that should be adopted by tourism organisations in order to deliver a high level of service during the service encounter Critically examine the factors that marketers of tourism destinations should consider to successful..

User Account

All Pages