Accounting

Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution ...

Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution ...

Tenika has a $10,000 basis in her interest in the TF Partnership and no remaining precontribution gain immediately before receiving a current distribution that consisted of $4,000 in money, plastic tubes held in inventory with a $3,000 basis to the p

safezone   85   1 Reply

Rimoun

Identify which of the following statements is true.

Identify which of the following statements is true.

Identify which of the following statements is true.
A) If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recogni

Mandarini   54   1 Reply

genflynn

John has a basis in his partnership interest of $30,000. He receives a current distribution of ...

John has a basis in his partnership interest of $30,000. He receives a current distribution of ...

John has a basis in his partnership interest of $30,000. He receives a current distribution of $6,000 cash, unrealized receivables (FMV $11,000, basis $10,000), inventory (FMV $8,000, basis $4,000), and investment land (FMV $7,000, basis $6,000). The

safezone   86   1 Reply

genflynn

Helmut contributed land with a basis of $5,000 and an FMV of $10,000 to the HG Partnership five ...

Helmut contributed land with a basis of $5,000 and an FMV of $10,000 to the HG Partnership five ...

Helmut contributed land with a basis of $5,000 and an FMV of $10,000 to the HG Partnership five years ago to acquire a 50% partnership interest. This year the land is distributed to another partner, Gail, when its FMV is $11,000. No other distributio

Mandarini   90   1 Reply

genflynn

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. ...

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. ...

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. This year the land is distributed to Sergio, another partner in the partnership. At the time of distribution, the land had a $12,000 FMV. What is the im

safezone   84   1 Reply

strwbrry

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. ...

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. ...

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. This year the land is distributed to Sergio, another partner in the partnership. At the time of distribution, the land had a $12,000 FMV. How much gain

safezone   150   1 Reply

Rimoun

A new partner, Gary, contributes cash and assumes a share of partnership liabilities. Diane's ...

A new partner, Gary, contributes cash and assumes a share of partnership liabilities. Diane's ...

A new partner, Gary, contributes cash and assumes a share of partnership liabilities. Diane's capital, profits, and loss interest in the partnership is reduced by 5% due to the admission of Gary. The Sec. 751 rules do not apply. Partnership liab

safezone   57   1 Reply

Rimoun

A limited liability company is a form of business entity that combines the legal benefits of the ...

A limited liability company is a form of business entity that combines the legal benefits of the ...

A limited liability company is a form of business entity that combines the legal benefits of the corporate form with the tax benefits of the partnership form.
 T or F?

safezone   96   1 Reply

strwbrry

When a retiring partner receives payments that exceed the value of that partner's partnership ...

When a retiring partner receives payments that exceed the value of that partner's partnership ...

When a retiring partner receives payments that exceed the value of that partner's partnership property, the excess payment is a guaranteed payment.
 T or F?

Mandarini   66   1 Reply

Rimoun

The sale of a partnership interest always results in capital gain or loss rather than ordinary ...

The sale of a partnership interest always results in capital gain or loss rather than ordinary ...

The sale of a partnership interest always results in capital gain or loss rather than ordinary income.
 T or F?

safezone   75   1 Reply

Rimoun

A partner's holding period for a partnership interest is never considered when determining the ...

A partner's holding period for a partnership interest is never considered when determining the ...

A partner's holding period for a partnership interest is never considered when determining the holding period for property distributed in a liquidating distribution.
 T or F?

Mandarini   48   1 Reply

genflynn

A partner can recognize gain, but not loss, on a liquidating distribution. T or F?

A partner can recognize gain, but not loss, on a liquidating distribution. T or F?

A partner can recognize gain, but not loss, on a liquidating distribution.
 T or F?

safezone   53   1 Reply

genflynn

For Sec. 751 purposes, "substantially appreciated inventory" means property held for ...

For Sec. 751 purposes, "substantially appreciated inventory" means property held for ...

For Sec. 751 purposes, "substantially appreciated inventory" means property held for sale to customers whose market value exceeds its adjusted basis.
 T or F?

Mandarini   73   1 Reply

genflynn

A partner's holding period for property distributed as a current distribution begins on the date of ...

A partner's holding period for property distributed as a current distribution begins on the date of ...

A partner's holding period for property distributed as a current distribution begins on the date of distribution.
 T or F?

Mandarini   63   1 Reply

genflynn

If a partnership asset with a deferred precontribution gain is distributed within seven years of ...

If a partnership asset with a deferred precontribution gain is distributed within seven years of ...

If a partnership asset with a deferred precontribution gain is distributed within seven years of acquisition in a nonliquidating distribution to a partner who did not contribute the asset, the precontribution gain must be recognized by the contributi

Mandarini   61   1 Reply

genflynn

Bud has devoted his life to his business, the BK Partnership, in which he owns an 85% capital and ...

Bud has devoted his life to his business, the BK Partnership, in which he owns an 85% capital and ...

Bud has devoted his life to his business, the BK Partnership, in which he owns an 85% capital and profits interest. Because he has worked so hard all his life, he never married and has no children. He has decided to give a 25% capital and profits int

safezone   252   1 Reply

strwbrry

At the beginning of the current year, Terry has a $40,000 basis for his general partnership interest ...

At the beginning of the current year, Terry has a $40,000 basis for his general partnership interest ...

At the beginning of the current year, Terry has a $40,000 basis for his general partnership interest in the TKE Partnership. He materially participates in the business activities of the partnership. On November 1, he receives a $4,000 distribution. H

Mandarini   86   1 Reply

Rimoun

Jerry has a 10% interest in the EKG Partnership capital, profits, and losses. He is a limited ...

Jerry has a 10% interest in the EKG Partnership capital, profits, and losses. He is a limited ...

Jerry has a 10% interest in the EKG Partnership capital, profits, and losses. He is a limited partner. At the beginning of the current year, his basis in his partnership interest is $10,000. The partnership earned $20,000 of ordinary income this year

Mandarini   117   1 Reply

genflynn

Mike and Jennifer form an equal partnership. Mike contributes cash of $15,000 and Jennifer ...

Mike and Jennifer form an equal partnership. Mike contributes cash of $15,000 and Jennifer ...

Mike and Jennifer form an equal partnership. Mike contributes cash of $15,000 and Jennifer contributes land having a $15,000 FMV and a basis of $5,000. If the partnership sells the land three years later for $18,000, what are the tax consequences to

safezone   183   1 Reply

Rimoun

Tracy has a 25% profit interest and a 20% loss interest in the Dupont Partnership. The Dupont ...

Tracy has a 25% profit interest and a 20% loss interest in the Dupont Partnership. The Dupont ...

Tracy has a 25% profit interest and a 20% loss interest in the Dupont Partnership. The Dupont Partnership reports the following income and loss items for the current year:

Net long-term capital loss   $50,000
Net Sec. 1231 gain   45,000

safezone   119   1 Reply

genflynn

Dinia has agreed to provide services valued at $30,000 to the L-M Partnership. On January 1 of the ...

Dinia has agreed to provide services valued at $30,000 to the L-M Partnership. On January 1 of the ...

Dinia has agreed to provide services valued at $30,000 to the L-M Partnership. On January 1 of the current year, she is given a 20% capital and profits interest in the partnership in exchange for her services. The partnership has no liabilities at th

Mandarini   41   1 Reply

genflynn

Jason, a lawyer, provided legal services for the employees of the ABC Partnership during the first ...

Jason, a lawyer, provided legal services for the employees of the ABC Partnership during the first ...

Jason, a lawyer, provided legal services for the employees of the ABC Partnership during the first six months of the current year. In exchange, he received a 2% capital and profits interest in the partnership. The value of the interest is $5,000. Wha

safezone   76   1 Reply

strwbrry

When the PDQ Partnership formed, it knew it had a good product, but it was a bit short on cash. ...

When the PDQ Partnership formed, it knew it had a good product, but it was a bit short on cash. ...

When the PDQ Partnership formed, it knew it had a good product, but it was a bit short on cash. After seeing the product, Jim, a CPA, said that he would set up an accounting system for the partnership in exchange for a 15% profits interest in the par

safezone   47   1 Reply

strwbrry

What is the tax impact of guaranteed payments on the partner and the partnership?

What is the tax impact of guaranteed payments on the partner and the partnership?

What is the tax impact of guaranteed payments on the partner and the partnership?

Mandarini   62   1 Reply

Rimoun

Explain the three different limitation provisions that a partner must satisfy before a loss can be ...

Explain the three different limitation provisions that a partner must satisfy before a loss can be ...

Explain the three different limitation provisions that a partner must satisfy before a loss can be deducted.

safezone   77   1 Reply

genflynn

Under what conditions will a special allocation of partnership depreciation be recognized? Assume ...

Under what conditions will a special allocation of partnership depreciation be recognized? Assume ...

Under what conditions will a special allocation of partnership depreciation be recognized? Assume the partnership has no nonrecourse liabilities.

safezone   56   1 Reply

strwbrry

What is included in partnership taxable income?

What is included in partnership taxable income?

What is included in partnership taxable income?

safezone   54   1 Reply

genflynn

Briefly explain the aggregate and entity theories as they relate to partnerships.

Briefly explain the aggregate and entity theories as they relate to partnerships.

Briefly explain the aggregate and entity theories as they relate to partnerships.

Mandarini   53   1 Reply

strwbrry

What are the three rules and their order when determining a partnership tax year?

What are the three rules and their order when determining a partnership tax year?

What are the three rules and their order when determining a partnership tax year?

safezone   52   1 Reply

Rimoun

Explain the tax consequences for both the service partner and the partnership when a contribution of ...

Explain the tax consequences for both the service partner and the partnership when a contribution of ...

Explain the tax consequences for both the service partner and the partnership when a contribution of services is made to the partnership.

safezone   46   1 Reply

strwbrry

Explain the difference between partnership distributions and distributive shares.

Explain the difference between partnership distributions and distributive shares.

Explain the difference between partnership distributions and distributive shares.

Mandarini   74   1 Reply

Rimoun

Jeremey is a partner in the Jimimey partnership. Why does he need to know his basis in his ...

Jeremey is a partner in the Jimimey partnership. Why does he need to know his basis in his ...

Jeremey is a partner in the Jimimey partnership. Why does he need to know his basis in his partnership interest?

safezone   57   1 Reply

strwbrry

In January, Daryl and Louis form a partnership with each contributing $75,000 in cash. The ...

In January, Daryl and Louis form a partnership with each contributing $75,000 in cash. The ...

In January, Daryl and Louis form a partnership with each contributing $75,000 in cash. The partnership agreement provides that Daryl would receive a guaranteed payment for salary of $20,000 and that partnership profits and losses (computed after dedu

Mandarini   96   1 Reply

strwbrry

Edward owns a 70% interest in the capital, profits, and losses of the Edward and Moore Partnership. ...

Edward owns a 70% interest in the capital, profits, and losses of the Edward and Moore Partnership. ...

Edward owns a 70% interest in the capital, profits, and losses of the Edward and Moore Partnership. During the year, Edward purchases surplus inventory from the partnership for $5,000. On the date of the sale, the inventory has an adjusted basis to t

safezone   113   1 Reply

genflynn

The Troika Partnership has an ordinary loss of $48,000 for the year. Before allocation of the loss ...

The Troika Partnership has an ordinary loss of $48,000 for the year. Before allocation of the loss ...

The Troika Partnership has an ordinary loss of $48,000 for the year. Before allocation of the loss at the end of the year, Shaad's one-third limited partnership interest has an adjusted basis of $5,000. Shaad's only other income or loss is

Mandarini   80   1 Reply

Rimoun

Clark and Lewis are partners who share the profits and losses of the C&L Partnership 60% and ...

Clark and Lewis are partners who share the profits and losses of the C&L Partnership 60% and ...

Clark and Lewis are partners who share the profits and losses of the C&L Partnership 60% and 40%, respectively. The tax basis of each partner's interest in the partnership as of December 31 of last year was as follows: Clark, $14,000; Lewis,

Mandarini   136   1 Reply

Rimoun

Elijah contributes securities with a $90,000 FMV (purchased in 2008 at a cost of $50,000) to become ...

Elijah contributes securities with a $90,000 FMV (purchased in 2008 at a cost of $50,000) to become ...

Elijah contributes securities with a $90,000 FMV (purchased in 2008 at a cost of $50,000) to become a one-third partner in the EJK Partnership on January 1 of the current year. The securities are sold on December 15 of the current year for $105,000.

safezone   76   1 Reply

Rimoun

The WE Partnership reports the following items for its current tax year:ItemAmountIncomeOperating ...

The WE Partnership reports the following items for its current tax year:ItemAmountIncomeOperating ...

The WE Partnership reports the following items for its current tax year:

Item   Amount
Income
Operating income   $90,000
Rental income   15,000
Interest income:
   Tax-exempt municipal bonds   2,000
   Corporate bonds   4,0

Mandarini   138   1 Reply

Rimoun

The XYZ Partnership is held by ten partners who have the following capital and profits ownership of ...

The XYZ Partnership is held by ten partners who have the following capital and profits ownership of ...

The XYZ Partnership is held by ten partners who have the following capital and profits ownership of the partnership. The tax year-end used by each of the ten partners is also indicated. Assume each partner has used this year-end for at least five yea

safezone   55   1 Reply

strwbrry

The RT Limited Partnership incurs the following expenses during the time that the partnership is ...

The RT Limited Partnership incurs the following expenses during the time that the partnership is ...

The RT Limited Partnership incurs the following expenses during the time that the partnership is being organized:

Attorneys' fees:
   For drawing up the partnership agreement   $10,000
   For advice on marketing the partnership in

safezone   71   1 Reply

genflynn