Partnership Scenario Solutions (Part 1).xlsx - Alphabet...

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Copyrighted 2018 Machiavelli ChaoAlphabet Soup PartnershipAnalysis of Partnership BasisAngelaBobCharlieInitial Contribution:BasisCCash80,000Eqpt22,000Vehicle15,000BuildingFMVMM80,00080,00080,000Liabilities on contributed assetsB070,0009,000Value of 1/4 interest in partnershipA80,00080,00080,000Partnership Basis in Transferred Assets:C80,00022,00015,000Realized Gain:FMV of partnership interest receivedA80,00080,00080,000Less: Transferred basisC(80,000)(22,000)(15,000)Plus: Liabilities assumed by partnershipB052,5006,750Realized gain0110,50071,750Recognized Gain:Transferred basisC80,00022,00015,000Equipment loanG17,50017,50017,500Vehicle loanYY2,2502,2502,250Building loanH22,50022,50022,500Operations loanU60,000060,000Furniture loanF20,000020,000Less: Liabitlies assumed by othersB0(70,000)(9,000)Outside basis (Steps 1 to 3)D202,250(5,750)128,250Recognized gainP05,7500Outside Basis in Partnership:Outside basis (Steps 1 to 3)D202,250(5,750)128,250Plus: Recognized gainP05,7500New oustide basis202,2500128,250Gain on sale of vehicle (122,750-15,000)DDFMV of vehicle at contributionMM0080,0000Less: Partner's basis in vehicleC00(15,000)0Plus: Partner's net debt relief upon saleB-YY006,7500Built-in gain on sale of vehicleWW--71,750-

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Term
Spring
Professor
armstr
Tags
Debt, Machiavelli Chao

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