final exam - Which of the following is not a type of entity...

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Which of the following is not a type of entity that can be treated as a partnership for Federal income tax purposes? A general partnership. A limited liability company. A public service company. A limited liability limited partnership. All of the above are treated as partnerships. Question 2 5 points Save A partnership will take a carryover basis in an asset it acquires when: The partnership acquires the asset through a § 1031 like-kind exchange. A partner owning 25% of partnership capital and profits sells the asset to the partnership. The partnership acquires the asset from a partner as a contribution to partnership capital under § 721(a). The partnership leases the asset from a partner on a one-year lease. None of the above. Question 3 5 points Save On January 1 of the current year, Sarah and Bart form an equal partnership. Sarah makes a cash contribution of $60,000 and a property contribution (adjusted basis of $160,000; fair market value of $140,000) in exchange for her interest in the partnership. Bart contributes property (adjusted basis of $120,000; fair market value of $200,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation? Sarah has a $200,000 tax basis for her partnership interest. The partnership has a $140,000 adjusted basis in the property contributed by Sarah. Bart recognizes an $80,000 gain on his property transfer. Bart has a $120,000 tax basis for his partnership interest. None of the statements is true. Question 4 5 points Save When property is contributed to a partnership for a capital and profits interest, the holding period of the contributing partner’s interest: May include the holding period of the contributed property. Always starts the day after the contribution date. Always starts the day the property was contributed. Never includes the holding period of the contributed property. None of the above.
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Question 5 5 points Save Cardinal, LLC incurred $20,000 of startup expenses, $3,000 of organizational costs, and paid $10,000 in transfer taxes to change the title (ownership) of a building contributed by one of the LLC’s members. Which
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This note was uploaded on 10/20/2009 for the course TAXATION ACC 3551 taught by Professor Bryanbowe during the Spring '09 term at Amity University.

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final exam - Which of the following is not a type of entity...

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