The ABC Partnership has the following balance sheets at December 31: On that date, C sells his
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Question:
The ABC Partnership has the following balance sheets at December 31:
On that date, C sells his interest in the partnership to unrelated buyer G for $186,000.
| Basis | FMV |
Cash | $45,000 | $45,000 |
Accounts Receivable | 0 | 108,000 |
Inventory | 66,000 | 120,000 |
Land | 420,000 | 285,000 |
| $531,000 | $558,000 |
Capital, A | $177,000 | $186,000 |
Capital, B | 177,000 | 186,000 |
Capital, C | 177,000 | 186,000 |
| $531,000 | $558,000 |
- How much gain or loss will C recognize in connection with the sale to G?
- What will be the character of C’s gain or loss?
- How much gain will the partnership and partners A and B recognize on the sale?
- What will be G’s inside basis in the partnership property?
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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