13. On July 1, Ann received a 10% interest in the AT partnership, for past services...

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13. On July 1, Ann received a 10% interest in the AT partnership, for past services rendered. Partnership net assets of July 1 had a basis of $140,000 and a fair market value of $200,000. What income should Ann include in her current tax return for the partnership interest transferred to her by the other partners? USE THE FOLLOWING INFORMATION FOR QUESTIONS 14-15. 15. a. $0. b. $14,000 ordinary income. c. $20,000 ordinary income. d. $20,000 long-term capital gain. On May 1 Year 1, Ally was admitted to the AB partnership. Ally's contribution to capital consisted of 500 shares of stock in Dark Corporation, purchased in Year 0 for $20,000, and which had a fair market value of $100,000 on May 1, Year 1. Ally's interest in the partnership's capital and profits is 25%. On May 1, Year 1, the fair market value of the partnership's net assets (after Ally was admitted) was $400,000. 14. What was Ally's gain on the exchange of the Dark stock for Ally's partnership interest? a. $0. b. $80,000 ordinary income. c. $80,000 long-term capital gain. d. $80,00§1231 gain. 16. On June 1, Year 3, the partnership distributed the 500 shares of Dark stock to partner Kate. The fair market value of the stock on the data of distribution was $80,000. What is Ally's recognized gain on the distribution? a. $0. b. $17,500. c. $70,000. d. $80,000. Ash, Blue, Cream, and Donnie formed the ABCD partnership. Each partner owns a 25% interest in the entity. Ash and Blue use taxable years ending June 30. Cream and Donnie have taxable years ending September 30. Accordingly, ABCD's taxable year ends on: a. June 30. b. September 30. C. Either June 30 or September 30, at each partner's discretion. d. December 31. 13. On July 1, Ann received a 10% interest in the AT partnership, for past services rendered. Partnership net assets of July 1 had a basis of $140,000 and a fair market value of $200,000. What income should Ann include in her current tax return for the partnership interest transferred to her by the other partners? USE THE FOLLOWING INFORMATION FOR QUESTIONS 14-15. 15. a. $0. b. $14,000 ordinary income. c. $20,000 ordinary income. d. $20,000 long-term capital gain. On May 1 Year 1, Ally was admitted to the AB partnership. Ally's contribution to capital consisted of 500 shares of stock in Dark Corporation, purchased in Year 0 for $20,000, and which had a fair market value of $100,000 on May 1, Year 1. Ally's interest in the partnership's capital and profits is 25%. On May 1, Year 1, the fair market value of the partnership's net assets (after Ally was admitted) was $400,000. 14. What was Ally's gain on the exchange of the Dark stock for Ally's partnership interest? a. $0. b. $80,000 ordinary income. c. $80,000 long-term capital gain. d. $80,00§1231 gain. 16. On June 1, Year 3, the partnership distributed the 500 shares of Dark stock to partner Kate. The fair market value of the stock on the data of distribution was $80,000. What is Ally's recognized gain on the distribution? a. $0. b. $17,500. c. $70,000. d. $80,000. Ash, Blue, Cream, and Donnie formed the ABCD partnership. Each partner owns a 25% interest in the entity. Ash and Blue use taxable years ending June 30. Cream and Donnie have taxable years ending September 30. Accordingly, ABCD's taxable year ends on: a. June 30. b. September 30. C. Either June 30 or September 30, at each partner's discretion. d. December 31.

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The detailed answer for the above question is provided below 13 Anns income b 14000 ordinary income ... View the full answer