{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Mirza_Assignment 7 - Ayesha Afzal Mirza Federal Income...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Ayesha Afzal Mirza Federal Income Taxation FALB09 - Sec A Instructor: Joseph Poletti Assignment 7
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 11 13. a. Cash beginning of year = $120,000 Share of EG’s debt = $80,000 × ½= 40,000 Erica’s basis, beginning of year =$160,000 b. Cash beginning of year = $120,000 Add: Taxable income = $70,000 Tax-exempt interest income = 1,000 § 1231 gain = 2,000 Long-term capital gain = 500 Total = 73,500 $193,500 Less: Short-term capital loss = $ 1,500 Political contribution = 500 Charitable contribution = 1,000 Payment of Erica’s medical expenses = 4,000 Cash distribution to Erica = 10,000 Total = (17,000) $176,500 Plus: Share of EG’s debt = $100,000 × ½ = 50,000 Erica’s basis, end of year = $226,500 14. a. Carols gain on land = $20,000 Gain on equipment = $60,000 The partnership realizes a gain equal to the value of the property it receives (it has a $0 basis in the partnership interests it issues).
Image of page 2
b. Neither the partnership nor either of the partners recognizes any gain on formation of the entity. c. Carol’s substituted basis of $70,000 = 30,000 + $40,000. Connie will take a substituted basis of $30,000 in her partnership interest ($30,000 basis in the equipment). d. Partnership Carryover Basis = $30,000 basis in cash, $40,000 basis in land, and $30,000 basis in equipment.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern