Reference no: EM131208084
Kasinda is a partner in Twins Partnership. At January 1, 2015, her 25% partnership interest has an adjusted cost base of $35,000. During 2015, she withdraws $85,000 from the partnership. During 2015, the partnership has business income for tax purposes of $400,000. What is her adjusted cost base on December 31, 2015, and what tax consequences will result from the transactions during the year?
The adjusted cost base on December 31, 2015 is nil. Because Kasinda has withdrawn more than her adjusted cost base from the partnership, she will report a taxable capital gain of $25,000. Her partnership business income is $100,000.
The adjusted cost base on December 31, 2015 is $50,000. Kasinda will report partnership business income of $100,000.
The adjusted cost base on December 31, 2015 is nil. Kasinda will report partnership business income of $100,000.
The adjusted cost base on December 31, 2015 is negative $50,000. Because Kasinda has withdrawn more than her adjusted cost base from the partnership, she will report partnership business income of $50,000.
|
Performance measurement-the balanced scorecard
: Performance measurement. The Balanced Scorecard. Measuring the Financial Performance of Cost, Revenue, and Profit Centers
|
|
What is your estimate of the stock current price
: A company currently pays a dividend of $3.5 per share (D0 = $3.5). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, then at a constant rate of 5% thereafter. The company's stock has a beta of 0.8, ..
|
|
Major consideration when analyzing special order
: Which of the following describes the time value of money? Which of the following is a capital budgeting method that is used to screen potential investments? Which of the following is a capital budgeting method that ignores the time value of money? Wh..
|
|
Statements related to partnerships
: Which one of the following statements related to partnerships is NOT correct?
|
|
What tax consequences will result from the transactions
: Kasinda is a partner in Twins Partnership. At January 1, 2015, her 25% partnership interest has an adjusted cost base of $35,000. During 2015, she withdraws $85,000 from the partnership. During 2015, the partnership has business income for tax purpos..
|
|
Alternatives will accomplish both objectives
: Red Bush and Green Tree are equal partners in Arbor Partnership. Each partner has contributed capital of $60,000 to the partnership and this is also their adjusted cost base for the partnership interest. Blue Grass wants to join the partnership as an..
|
|
The audit budget when planning the audit
: Samantha is a senior manager at a national CPA firm. She has recently taken over the planning responsibilities on her firm’s largest client, a midsize publicly traded company with multiple subsidiaries around North America. The client chose her firm ..
|
|
Manufacturer of clinical diagnostic equipment
: Donna Jamison, a recent UNC graduate with four years of for-profit health management experience, was recently brought in as assistant to the chairman of the board of Computron Diagnostics, a manufacturer of clinical diagnostic equipment. The company ..
|
|
Distinguishing factor that makes arrangement co-ownership
: The distinguishing factor that makes an arrangement a co-ownership as opposed to a partnership would be:
|