ACC 760 9-28

ACC 760 9-28 - ACC 760 Groups 4 Nick Karlowicz Brain...

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Unformatted text preview: ACC 760 Groups 4 Nick Karlowicz Brain Melanson Jonathan Ng Marta Szymanska Question 9-28 Contribution of Services. The G-H equal partnership was formed several years ago. Because the business has grown so rapidly, the partnership was expanded to include E and F. E and F each obtained a 20 percent profit and capital interest in the partnership in exchange for their services. Es servicesthe investigation and acquisition of propertyhave been completed, and he received an unrestricted capital interest at the beginning of the year. F has agreed to serve as a manager of the new operation. Her ownership interest is subject to her continuing as the manger for five consecutive years. At the beginning of the year, the partnerships net assets had a basis of $100,000 and a market value of $300,000. Thus, a 20 percent interest is valued at $60,000. The partners anticipate the business having a value of approximately $500,000 at the end of the five years when the restriction is removed from Fs interest. Determine the tax approximately $500,000 at the end of the five years when the restriction is removed from Fs interest....
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This note was uploaded on 11/08/2010 for the course AC 760 taught by Professor Mb during the Spring '10 term at Hartford.

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