Assignment 5-3 ACCT 753 Assessment Problems 4 - 1Assignment 5-1 Assessment Problems 4 Pass-Through Entity Taxation ACCT753 November 2 2014 2Assignment

Assignment 5-3 ACCT 753 Assessment Problems 4 - 1Assignment...

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1Assignment 5-1 Assessment Problems 4 Pass-Through Entity Taxation ACCT753 November 2, 2014
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2Assignment 5-1 6.1:Partner A is a 25% partner, and has a basis in her interest and capital account balanceof $200,000. She contributes some land (FMV = $100,000, basis = $60,000, liability attached = $40,000) to the partnership. How much are her book capital account and basisafterward? 6.2:A, B, and C form the equal ABC partnership by contributing $100,000 each, and purchasing some equipment for $300,000. The equipment has a depreciable life of six years, and all depreciation (straight line) is allocated to A. Capital accounts are properly How much depreciation will be allocated to each partner in year 3? How much will be allocated to each partner in year 4?
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3Assignment 5-1 6.3:The ABCD Partnership owns an office building. In a special allocation that has economic effect, partner D is allocated all of the depreciation from the building, and all ofthe gain from any sale of the building, up to the amount of depreciation taken. Any gain in excess of depreciation taken is to be split equally among the partners. The building is expected to be sold for a substantial gain within four years. Is this allocation substantial?
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