Dividend income of $6,000, an ordinary loss of $48,000 and a taxable distribution of $15,000. e. Which of the following partnership items is not required to be separately stated? 69. Real estate taxes. a. Charitable contributions. b. Section 179 expense. c. Interest income. d. All of the above must be separately stated. e. Ben and Jerry are co-owners of an apartment building which they lease to tenants. Ben and Jerry perform no services 70. other than incidental repairs. The arrangement constitutes a partnership between the Ben and Jerry and they must fi le a partnership tax return a. each year. The arrangement is considered as co-ownership of property and no partnership return is required. b. The arrangement would be treated as an invesment partnership and the two owners could fi le an election to be c. excluded from the partnership provisions. Ben and Jerry could elect under check-the box regulations to be taxed as a partnership, otherwise, the d. arrangement would be taxed as a corporation. Bob Barker contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 71. subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building. What is Alpha’s basis in the building? $0 a. $30,000 b. $50,000 c. $84,000 d. Balboa Partnership is owned by the following: 72. 25% by Ann 10% by Bill (Ann’s son) 10% by Charles (Ann’s brother) 25% by Dagwood (unrelated to Ann) 30% by Acme Corporation (owned equally by Ann and Dagwood). How much of the partnership is Ann (directly and indirectly) treated as owning?
819 Testbank © 2009 CCH. All Rights Reserved. Chapter 19 25% a. 35% b. 45% c. 60% d. Brad Troutman is a partner in the ABC Partnership. On October 1, 2009, he transfers property (fair market value = 73. $120,000, basis = $90,000) to the partnership. Eighteen months later the partnership transfers $60,000 to Brad. Brad and the partnership can’t prove that the payment was unrelated to the contribution. How much income will Brad have to recognize on the contribution/distribution? $0. a. $15,000. b. $30,000. c. $60,000. d. None of the above. e. Shelly transfers property (fair market value = $300,000, basis - $200,000) to the BDO Partnership in exchange for a ¼ 74. interest in the partnership. Six years later at a time when Shelly’s basis in her partnership interest is $240,000, BDO transfers the property to another partner in liquidation of that partner’s interest. How much gain will Shelly recognize from this contribution/distribution? $0. a. $40,000. b. $60,000. c. $100,000. d. None of the above. e. Gwen and Mark are equal partners in the GM partnership. They share pro fi ts equally, but they agree to allocate 70% 75. of the losses to Gwen and 30% to Mark. Their balance sheet includes the following: Cash $300,000 Note Payable $200,000 Capital, Gwen $40,000 Capital, Mark $60,000 The note payable is a recourse debt. How much of the liability is allocable to Gwen?
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