FREE Trial

Ashlee, Hiroki, Kate, and Albee LLC each own a 25 percent interest in Tally Industries LLC, which generates annual gross

Question:

Ashlee, Hiroki, Kate, and Albee LLC each own a 25 percent interest in Tally Industries LLC, which generates annual gross receipts of over $10 million. Ashlee, Hiroki, and Kate manage the business, but Albee LLC is a non-managing member. Although Tally Industries has historically been profitable, for the last three years losses have been allocated to the members. Given these facts, the members want to know whether Tally Industries can use the cash method of accounting. Why or why not?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 57% (7 reviews)

Generally partnerships without corporate partners may use the cash method of accounting However part…View the full answer


answer-question
Answered By
tutor-profile-image
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional. Since 2012 I am providing home tutions.
3.30+ 2+ Reviews 10+ Question Solved
Related Book For  answer-question
Taxation Of Individuals And Business Entities 2015

Taxation Of Individuals And Business Entities 2015

ISBN: 9780077862367

6th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

See More Books
Question Details
Chapter # 20
Section: Discussion Questions
Problem: 57
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: January 20, 2017 12:09:05
See More Questions

Students also viewed these Business Law questions

Q:
Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Kevan: _______________Basis Fair __________Market Value...
A:
a 0 None of the members recognize gain because their debt relief was not in excess of their bases in......
Q:
James and Kate Sawyer were married on New Years Eve of 2017.Before their marriage, Kate lived in New York and worked as a hair stylist for one of the citys top salons.James lives in Atlanta where he...
A:
James and Kate have taxable income of 124 810 See the analysis below Description Amount Explanation Total income Jamess Salary 100 000 Kates Schedule C income before home office deduction 40 000 Home......
Q:
Equity method entries. Weber Corporation acquired significant influence over Albee Computer Company on January 2 by purchasing 20% of its outstanding stock for $100 million. Weber Corporation...
A:
Weber Corporation equity method entries Amounts in Millions Investment in St......
Q:
Although illegal, overloading is common in the trucking industry. A state highway planning agency (Minnesota Department of Transportation) monitored the movements of overweight trucks on an...
A:
To determine if the number of overweight trucks per week is distributed over the 7 days of t......
Q:
Describe the differences between process costing and job-order costing.
A:
Process costing collects costs by process departme......
Q:
A wire carrying a current I is bent into the shape of an exponential spiral, r = eθ, from θ = 0 to θ = 2π as suggested in Figure P30.69. To complete a loop, the ends of the...
A:
There is no contribution from the straight portion of......
Q:
Z (C P).C (Z P) Use truth tables to determine whether the following pairs of symbolized statements are logically equivalent, contradictory, consistent, or inconsistent. First, determine whether...
A:
To determine whether the pairs of symbolized statements are logically equivalent contradictory consistent or inconsistent we can create truth tables f......
Q:
1. How is an opportunity created to commit appraisal fraud? Does the appraiser act alone, or is collusion routinely involved? 2. How is appraisal fraud detected? Is intent to deceive easy to prove in...
A:
The opportunities to commit fraud include difficulty of detection lack of controls and segregation of parties Almost all appraisal frauds involve collusion between some type of broker or investor and......
Q:
1. In the computer industry, network security refers to techniques for ensuring that data stored in a computer cannot be read or compromised by any individuals without authorization. Your opinion. 2....
A:
1 Network security is indeed a critical aspect of the computer industry and its importance cannot be overstated In today s interconnected world where vast amounts of sensitive data are stored and tran......
Q:
The Stand-Alone Project requires you to perform an in-depth strategic audit of American Airlines, Inc. These past several years have been troubling times for the airline industry. Jet fuel prices...
A:
American Airlines Strategic Audit PART A a Performances with regard to profitability marketplace share and revenues In considering the performances of the organization over the last few years between......
Q:
Ryan, Dahir, and Bill have operated Broken Feather LLC for the last four years using a calendar year-end. Each has a one-third interest. Since they began operating, their busy season has run from...
A:
a If Broken Feather can establish that 25 percent of its gross receipts for t......
Q:
Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions: Sales revenue ..............................................................$40,000 Long-term capital...
A:
Turtle Creeks ordinary business income is calculated in the tab......
Q:
Shoppers enter Hamilton Place Mall at an average of 120 per hour. What is the probability that at least 35 shoppers will enter the mall between 5:00 and 5:10 pm?
A:
The given rate is 120 per hour......
Q:
The myStrategy box at the end of Chapter 1 asked how much you would be willing to pay for the job you wantfor a job that reflects your values. Here, we look at a different issue relating to worth:...
A:
Choosing between a two year full time MBA program and an 18 month executive MBA program involves considering various factors including value price and......
Q:
Generation Y (born between 1980 and 2001) is entering the work force and advancing their careers now, as the baby boomers begin to retire in large numbers. Given the smaller size of Gen Y compared to...
A:
Expectation of Different Business Ethics It is possible that as Generation Y Gen Y continues to expand in the workforce we may see some shifts or variations in business ethics compared to prior genera......
Q:
The outsourcing of IT programming jobs to India is now commonly understood after years of this trend. However, more recently some accounting functions have also begun to flow into Indias large...
A:
In the field of accounting certain aspects are more likely to resist outsourcing trends due to the nature of the work High value activities that require critical thinking expertise and close interacti......
Q:
As discussed in the chapter, a balanced scorecard views the performance of an organization through four lenses: customer, innovation and learning, internal business, and financial. According to...
A:
1 Customer Perspective How do customers view us In the context of a business school the customers would primarily be the students but also alumni empl......
Q:
Your classmates are a group of friends who have decided to open a small retail shop. The team is torn between two storefront ideas. The first idea is to open a high-end antique store selling...
A:
Business Strategy for Each Store Concept a High End Antique Store Market Niche The strategy for the high end antique store is to target a niche market of affluent customers looking for authentic upsca......
Q:
Rank the vectors in Figure 3-37 in order of increasing value of their y component. A.
A:
Concentrate on the value of the y component of each vector A vector that is oriented horizont......
Q:
State whether each statement is true or false. If false, give a reason. {purple, green, yellow} = {green, pink, yellow}
A:
False The t......
Clinical Information Systems A Component-Based Approach 1st Edition - ISBN: 1441930450 - Free Book