Question: On January 1 of Year 1 Samantha purchased a one third interest in a partnership for 31000. At the time of the purchase the partnership

On January 1 of Year 1 Samantha purchased a one third interest in a partnership for 31000. At the time of the purchase the partnership had the following assets: AR Basis 0 45000 FMV Inventory 9000 15000 FMV Machinery 15000 33000 FMV. If the partnership makes a 754 election upon Samanthas purchase of interest, calculate the amount of ordinary income recognized by Samantha if the inventory is sold for 21000? a)2000 b)4000 c)7000 d)0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

On January 1 of Year 1 Samantha purchased a one third interest in a partnership for 31000. At the time of the purchase the partnership had the following assets: AR Basis 0 45000 FMV Inventory 9000...

Question 3 (18 marks) On January 1, 2021, Samantha Company (Samantha) purchased 66,000 shares of Teresa Limited (Teresa)'s ordinary share (30% shareholdings) for $924,000. This purchase gave Samantha...

On January 1 of year one, Nupartner purchased a one-third interest in a partnership for $40,000. At the time of purchase the partnership had the following assets: A.B. F.M.V. Accounts Receivable $0...

On January 1 of Year One, Nupartner purchased a one-third interest in a partnership for $40,000. At the time of purchase the partnership had the following assets: A.B.F.M.V Accounts Receivable $0...

On January 1 of year one, Nupartner purchased a one-third interest in a partnership for $40,000. At the time of purchase the partnership had the following assets: AB FMV A/R $0 $30,000 Land 60,000...

On January 1 of year one, Nupartner purchased a one - third interest in a partnership for $ 4 0 , 0 0 0 . At the time of purchase the partnership had the following assets: A . B . F . M . V ....

On January 1 of Year One, Nupartner purchased a one-third interest in a partnership for $40,000. At the time of the purchase, the partnership had the following assets: Adjusted Base Fair Market Value...

invests $25,000 Chico and Dino share net income and losses in a 73 ratio and have capital balances of $35,000 and $30,000 respectively. Filo for a one third interest in the partnership If the bonus...

A dockworker applies a constant horizontal force of 89.0 N to a block of ice on a smooth horizontal floor. The frictional force is negligible. The biock starts from rest and moves a distance 12.5 m...

Ludmilla Sanches is a college student with a food budget of $250 per month. She wants to get a certain level of nutritional benefits from the food she buys. The following table lists the foods she...

You learn that one nation has a Gini ratio of .25 and another nation has a Gini ratio of .85. Based on this you might conclude (A) the nation with the higher Gini ratio has a more equal distribution...

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.09 0.04 0.03 Bust 0.35 -0.15 0.22 -0.03 What is the expected return on an equally weighted portfolio of these...

What risks can you identify from a human resource perspective in Henri DeLahns arguments?

In retrospect, how might you have avoided the debate with Henri DeLahn by introducing human resource strategies during the growth phase of Canada Importers Ltd.?

If you were Rob Whittier, how would you resolve this dispute?