The Lexington partnership has a depreciable business asset (personal property) that it originally purchased for $60,000. The
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The Lexington partnership has a depreciable business asset (personal property) that it originally purchased for $60,000. The asset now has an adjusted basis of $36,000 and a market value of $70,000. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership.
a. How much is Lexington’s depreciation recapture potential?
b. How much ordinary income does Ambroz recognize when he sells this partnership interest?
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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a The partnerships potential depreciation recapture is 24000 The recapture p...View the full answer
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Related Book For 
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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