ACCT_753_Q1WW_9-2__Meet_Practice_Problems_9 - Pass-Through...

This preview shows page 1 - 3 out of 3 pages.

The preview shows page 1 - 3 out of 3 pages.
Pass-Through Entity Taxation | ACCT753-Q1WW-F149-2: Meet/PracticeProblems 9 9-2: Practice Problems 9Start Date:Mon, Nov 24Due Date:TBA, Week 9PointsPoints available:25Not yet graded.Meet/Practice Problems 9PurposeTo assess your ability to:Apply the basis adjustments to partnership property – IRC Code Sections 734(b), 743(b).Action ItemsComplete the following problems from Chapter 13 in your textbook:1.13.1:The equal XYZ Partnership has the following balance sheets:BasisFMVCash$54,000$54,000Land$15,000$42,000Unrealized Receivables$0$15,000Collectibles$3,000$9,000$72,000$120,000Liabilities$30,000$30,000Capital, X$14,000$30,000Capital, Y$14,000$30,000Capital, Z$14,000$30,000$72,000$120,000XYZ has a Code Section 754 election in effect, and X sells her interest to W for $30,000 cash.  Howmuch is the Code Sec. 743(b) adjustment?13.2:The equal XYZ Partnership has the following balance sheets:BasisFMVProperty A$39,000$54,000Property B$60,000$42,000Inventory A$3,000$15,000Inventory B$15,000$12,000$117,000$123,000page 1 of 3 - 11/23/2014
Capital, X$35,000$41,000Capital, Y$41,000$41,000Capital, Z$41,000$41,000$117,000$123,000XYZ has a Code Section 754 election in effect, and X sells her interest to W for $41,000 cash.  The twoProperties are both capital assets.  Inventory A was contributed by X at a time when its unrealizedappreciation was $6,000.  At the time of the transfer, X’s share of the partnership’s basis in partnershipassets is $35,000.How much is the Code Sec. 743(b) adjustment to each asset?a.

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
JIM
Tags
Balance Sheet, partner, following balance sheets, equal XYZ Partnership

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture