A warehouse owned by M&S (a partnership) and used in its business (i.e., to store inventory) is

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A warehouse owned by M&S (a partnership) and used in its business (i.e., to store inventory) is being condemned by the city to provide a right-of-way for a highway. The warehouse has appreciated by $180,000 based on an estimate of fair market value. In the negotiations, the city is offering $35,000 less than what M&S believes the property is worth. Alan, a real estate broker, has offered to purchase the property for $20,000 more than the city's offer. The partnership plans to invest the proceeds it will receive in an office building it will lease to various tenants.
a. Identify the relevant tax issues for M&S.
b. Would the answer in (a) change if M&S's warehouse was property being held for investment rather than being used in its business? Explain.
Partnership
A 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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Related Book For  answer-question

South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781337386173

21st Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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