1. Allie contributed the following business assets to ASW Partnership on August 1, 2015:

What is the holding period for the building and the inventory to ASW Partnership?
a. Building - long-term capital or § 1231 asset.
b. Building - short-term ordinary asset.
c. Inventory - short-term ordinary asset.
d. Botha and c.

2. Shelly contributed the following business assets to S&S Partnership on March 3, 2015:

What is the basis in the equipment and the accounts receivable to S&S?
a. Equipment $0; Accounts Receivable $ 0.
b. Equipment $75,000; Accounts Receivable $ 0.
c. Equipment $45,000; Accounts Receivable $ 0.
d. Equipment $45,000; Accounts Receivable $100,000.

3. Styron is a partner in Styron, Lee, & Jane Partnership. Styron owned 25% from January 1, 2015 to June 30, 2015, when he bought Lee's 25% interest. He owned 50% for the rest of the year. The partnership had ordinary income of $88,000 and $12,000 in long-term capital gains. Barring any special allocations in a partnership agreement, Styron's share of ordinary income for the year is:
a. $ 11,000.
b. $ 33,000.
c. $ 88,000.

d. $100,000.

4. Katlin contributes land to a partnership with a basis of $44,000 and a FMV of $56,000 in 2013. In 2015, when the FMV of the land is $58,000, the partnership distributes the land to Baily, another partner. Which of the following is true?
a. Katlin recognizes no gain or loss.
b. Baily recognizes a gain of $14,000.
c. Katlin recognizes a gain of $12,000.
d. Baily has a basis of $58,000 in the land.

Transcribed Image Text:

Basis FMV Building $175,000 $300,000 Inventory S 50,000 S100,000 Date Purchased bv Allie 07/01/02 05/08/12 Basis FMV Date Purchased by Shelly Equipment $75,000 45,000 Acct. Rec S 07/01/14 S0 $100,000 Various