What result to nupartner on the collection of receivables

Assignment Help Financial Management

Reference no: EM132016549

Nupartner purchases a one-third interest in the following three-person equal partnership for $40,000. At the time of the purchase the partnership has the following assets:

A.B. F.M.V.

Accounts Receivable $0 $30,000

Land (capital asset) 60,000 90,000

The partnership has made no Internal Revenue Code Section 754 election. It immediately distributes $10,000 of receivables to each of the three partners.

(a) What result to Nupartner on the collection of the receivables if Nupartner makes no Internal Revenue Code Section 732(d) election?

(b) What result to Nupartner on the collection of the receivables if he makes an Internal Revenue Code Section 732(d) election?

(c) If Nupartner elects Internal Revenue Code Section 732(d), what is his outside basis immediately after the distribution?

(d) Must the partnership approve Nupartner’s election under Internal Revenue Code Section 732(d)?

(e) Will the Internal Revenue Code Section 732(d) election have any immediate effect on the basis of Nupartner’s interest in the land remaining in the partnership?

Reference no: EM132016549

Questions Cloud

Describe the methodologies used for sanger : Describe the methodologies used for Sanger sequencing and compare them to the methods used for "shotguns sequencing" of genomic DNA.

Pressure in the bag : The volume of an automobile air bag was 74.8 L when inflated at 30 °C with 77.8 g of nitrogen (N2) gas. What was the pressure in the bag in mm of Hg?

An investor would prefer peg : An investor would prefer PEG. Inflation is currently 3%. It is expected to rise sharply over the next 5 years. What should an investor do?

How do the majority of proteins : How do the majority of proteins that exist outside cells get outside cells? Explain Pathways

What result to nupartner on the collection of receivables : What result to Nupartner on the collection of the receivables if Nupartner makes no Internal Revenue Code Section 732(d) election?

If a farmer buys ammonia and adds it to a field : If a farmer buys ammonia and adds it to a field, the amount remaining in the field after the crop is harvested is always much less

Social security deposit by individual : In 2012 the maximum Social Security deposit by an individual was $8,386.75. when you retire if the account pays 4% compounded annually and you retire at age 65?

Glycogen reserves of the liver : After 24 hours of starvation, the glycogen reserves of the liver are exhausted but there are still relatively large stores of fat

What needs to be done in order to successfully implement : Provide a comprehensive description, what benefit it may offer the organization, and what needs to be done in order to successfully implement this topic.

User Account

All Pages