96%(57)55 out of 57 people found this document helpful
This preview shows page 6 - 9 out of 13 pages.
18. At the beginning of 2016, Margaret’s adjusted basis in her 50 percent interest in MP Partnership, a calendar year general partnership, was $10,000. During 2016, Margaret did not make any additional contributions to MP Partnership, and Margaret’s share of MP Partnership liabilities did not change. During 2016, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deduction, gain and loss for 2016:Separately stated taxable income $30,000Tax-exempt interest$10,000Capital loss($20,000)What is Margaret’s adjusted basis in her partnership interest in MP Partnership at the endof 2016?
a. 0b. $10,000c. $15,000d. $25,00019.Sam, Sue, and Shelley formed a partnership. Sam received a 50 percent interest in the partnership in exchange for land with an adjusted basis to him of $30,000 and a fair market value of $50,000. Sue received a 25 percent interest in the partnership in exchange for $25,000 of cash. Shelley received a 25 percent interest in the partnership in exchange for $25,000 of cash. Six years after the date of contribution, the land contributed by Sam was sold by the partnership to an unrelated third party for $90,000. How much gain was required to be allocated to Sam as a result of the sale by the partnership?20. Larry and Moe are equal partners in the capital and profits of The LM Partnership. Larry and Moe are not related to each other. On August 1, 2015, Larry sold 100 shares of Last Chance Mining Corp. stock to the partnership for its fair market value of $7,000. Larry had purchased the stock in 2000 for $10,000. What, if any, is Larry’s recognized loss on the sale of this stock?21. Larry and Moe of the partnership in the prior question admit Curly to the partnership which is renamed The LMC Partnership. The total value of the partnership was $120,000 on December 31, 2015. On January 1, 2016, Curly contributed $40,000 to the partnership, and Curly’s partnership capital account was credited with $40,000. The partnership’s ordinary net income for 2016 was $60,000. As of December 31, 2016, Curly’s basis in his partnership interest and his 2016 income taxable income from the partnership were:22.On July 1, 2016, Linda acquired a 30% interest in Cupcake Bakery, a partnership, by contributing to the partnership property with a an adjusted basis to her of $5,000 and a
fair market value of $12,000 subject to a mortgage of $8,000 which was assumed by the partnership. What is Linda’s basis in her interest in Cupcake Bakery?a. $4,000b. $5,000c. $6,400d.$-0-