C12-Chp-11-2-Homework-Prb-Partnership-Dist-2012

C12-Chp-11-2-Homework-Prb-Partnership-Dist-2012 -...

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8520b6f83c0c8766e02f497da88b6fcde1487bbe.doc. Page 1 of 6 First Name Last Name: Home work-Chapter 11. Turn in one copy of your solutions at the start of class. (27 @ 4 Pts. = 108) Determine the amount and character of gain or loss a partner recognizes in a nonliquidating partnership distribution. 1 [Pg. 4, Sec. 731] The adjusted basis of Jody's partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000. What amount of taxable gain must Jody report as a result of this distribution? a. $0 b. $5,000 c. $10,000 d. $20,000 CPA 11-93 2 [Pg. 4, Sec. 731] Rebecca’s adjusted basis in a partnership interest was $10,000 before receiving these distributions: (1) Cash of $8,000 and (2) Land with an adjusted basis of $7,000 to the partnership and a FMV of $9,000. Assume this is a non-liquidating distribution for Rebecca. What Rebecca’s gain to be recognized as a result of these distributions? a. $7,000. b. $-0-. c. $2,000. d. $8,000. 3 [Pg. 4, Sec. 731] The adjusted basis of Mr. X's partnership interest in ABC partnership is $8,000. X received a non-liquidating distribution of $2,500 cash and property that had an adjusted basis to the partnership of $6,200 (fair market value - $7,000). X's recognized gain on this liquidation is: a. $0 b. $1,500 c. $2,500 d. $8,000 e. $9,500 4 [Pg. 4, Sec. 731] Stone's basis in Ace Partnership was $70,000 at the time he received a nonliquidating distribution of partnership capital assets. These capital assets had an adjusted basis of $65,000 to Ace, and a fair market value of $83,000. Ace had no unrealized receivables, appreciated inventory, or properties which had been contributed by its partners. What was Stone's recognized gain or loss on the distribution? a. $18,000 ordinary income. b. $13,000 capital gain. c. $ 5,000 capital loss. d. $0 Determine the partner’s basis of assets received in a nonliquidating partnership distribution. 5 [Pg. 6, Sec. 732] The adjusted basis of Jody's partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000. What is Jody's basis in the distributed property (other than cash)? a. $0 b. $30,000 c. $35,000 d. $40,000 CPA 11-93 6 [Pg. 6, Sec. 732] Rebecca’s adjusted basis in a partnership interest was $10,000 before receiving these distributions: (1) Cash of $8,000 and (2) Land with an adjusted basis of $7,000 to the partnership and a FMV of $9,000. Assume this is a non-liquidating distribution for Rebecca. What is her basis in the land? a.
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C12-Chp-11-2-Homework-Prb-Partnership-Dist-2012 -...

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