# ACCT_753_Q1WW_9-2__Meet_Practice_Problems_9 - Pass-Through...

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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.

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