Required information[The following information applies to the questions displayed below.]Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron andDeanne each contributed $140,000, and Keon transferred an acre of undeveloped land to the partnership. The land had atax basis of $74,500 and was appraised at $210,000. The land was also encumbered with a $74,500 nonrecoursemortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end ofthe first year, Blue Bell made a $10,000 principal payment on the mortgage. For the first year of operations, thepartnership records disclosed the following information:Sales revenueCost of goods soldOperating expensesLong-term capital gains§1231 gainsCharitable contributionsMunicipal bond interestSalary paid as a guaranteed payment to Deanne (notincluded in expenses)Required:a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.b. List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual incometax returns that include the results of the partnership's first year of operations.d. What are the partners' adjusted basis in their partnership interests at the end of the first year of operations?Complete this question by entering your answers in the tabs below.Required A Required B Required D$ 515,000434,00094,0002,850600300300Adjusted basisCompute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.AaronDeanneKeon3,000< Required ARequired B >

A partnership is a type of business where two or more persons enter into a legal agreement to be…

Required: a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership. b. List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership's first year of operations. d. What are the partners' adjusted basis in their partnership interests at the end of the first year of operations?

Required: a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership. b. List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership's first year of operations. d. What are the partners' adjusted basis in their partnership interests at the end of the first year of operations?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 2BCRQ

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Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $124,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $56,000 and was appraised at $180,000. The land was also encumbered with a $56,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,200 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: $ 480,000 470,000 70,000 1,500 600 Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions 300 Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) 300 3,000 c. Using the…
Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) Required: a. Compute the adjusted basis of each partner's…
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $108,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,000 and was appraised at $180,000. The land was also encumbered with a $72,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6,300 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue $ 470,000 Cost of goods sold 450,000 Operating expenses 55,000 Long-term capital gains 2,100 §1231 gains 900 Charitable contributions 300 Municipal bond interest 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) 3,000 a. Compute the adjusted basis of each partner’s interest in the partnership…
Required information [The following information applies to the questions displayed below.] Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $10,000 cash. Matt receives $3,000 cash and a parcel of land with a $7,000 fair market value and a $4,000 basis to the partnership. Matcoy has no debt or hot assets. e. What is Matt's ending basis in his partnership interest? Ending basis
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