26. Siri is a member of STP LLC and all members have a 1/3rd interest in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
26. Siri is a member of STP LLC and all members have a 1/3rd interest in capital and profits. The LLC has made an optional basis adjustment election. Siri sells her entire interest to Tom for $152,000. At the time of the sale the balance sheet is as follows: Cash Basis FMV 30,000 30,000 Capital accounts Depreciable 300,000 426,000 Siri assets Total Thelma Paula 330,000 456.000 Total Basis FMV 110,000 152,000 110,000 152,000 110,000 152,000 330,000 456,000 a. What is the amount of the section 754 optional basis adjustment? b. Which partner(s) will be allocated this basis adjustment? 26. Siri is a member of STP LLC and all members have a 1/3rd interest in capital and profits. The LLC has made an optional basis adjustment election. Siri sells her entire interest to Tom for $152,000. At the time of the sale the balance sheet is as follows: Cash Basis FMV 30,000 30,000 Capital accounts Depreciable 300,000 426,000 Siri assets Total Thelma Paula 330,000 456.000 Total Basis FMV 110,000 152,000 110,000 152,000 110,000 152,000 330,000 456,000 a. What is the amount of the section 754 optional basis adjustment? b. Which partner(s) will be allocated this basis adjustment?
Expert Answer:
Answer rating: 100% (QA)
a To calculate the amount of the Section 754 optional basis adjustment we need to determine the dif... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
-
Anne decides to leave the ABC Partnership after owning the interest for many years. She owns a 52% capital, profits, and loss interest in the general partnership (which is not a service partnership)....
-
Write a program that displays the color study shown at right, which gives Albers squares corresponding to each of the 256 levels of blue (blue-to-white in row major order) and gray (black-to-white in...
-
When are states totally preempted from regulation of the labor field, according to Supreme Court decisions?
-
Reciprocal cost allocation (continuation of 15-21). Consider E-books again. The controller of E-books reads a widely used textbook that states that the reciprocal method is conceptually the most...
-
Prove that, under the equivalent martingale measure \(\mathbb{Q}_{n}\) of Section 2.3.4, the ratio \(f_{t} B_{t}\) is a martingale. Data From Section 2.3.4, The mathematics of arbitrage relies on...
-
Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bills friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him...
-
24. A water jet whose cross section area is a striker wall making an angle e with the normal and rebounds elastically. The velocity of water of density d is v. Force exerted on wall is :- 0 (1) 2avd...
-
Read the case study CAN AIRLINES SOLVE THEIR BAGGAGE HANDLING PROBLEMS? and answer the question: What Kind of Management Reports Can Be Generated From the Data from These Systems?
-
Students in an introductory physics lab are producing a region of uniform electric field by applying a voltage to two 20-cmdiameter aluminum plates separated by 2.5 cm. They connect the two plates to...
-
Assume you have a sizable gain on 200 shares of stock that you bought 2 years ago for \($22\) per share and that is now (December 15) selling for \($50\) per share. Given a just announced tax rate...
-
Ibrahim bought 200 shares of a stock trading in the Abu Dhabi Securities Exchange at AED 12 (United Arab Emirates dirham) per share. Over time, the price of the stock increased to AED 18 per share....
-
When a hummingbird visits a flower, its wings rub against the flower and leaves, and this can result in a noticeable charge on the bird. There is an opposite charge in the earth. We can consider the...
-
A flying hummingbird picks up charge as it moves through the air. This creates a potential near the bird. What is the voltage of a hummingbird? Assume that the bird acquires a charge of +200 pC, a...
-
Below are 36 sorted ages of an acting award winner. Find P25. 16 18 23 24 26 27 28 28 33 34 34 35 38 39 42 46 48 48 48 49 51 51 53 55 56 58 59 62 62 63 67 67 70 71 71 77 P25 = (Type an integer or a...
-
In Exercises evaluate the limit, using LHpitals Rule if necessary. lim 07x cos x X
-
Jan has two jobs during 2012. One employer withheld and paid FICA taxes on $66,600 of Jan's salary, and the other employer withheld and paid FICA taxes on $44,400 in salary paid to Jan. Calculate the...
-
For each of the following cases, indicate the filing status for the taxpayer(s) for 2012 using the following legend: A - Single B - Married, filing a joint return C - Married, filing separate returns...
-
a. Wilson filed his individual tax return on the original due date, but failed to pay $700 in taxes that were due with the return. If Wilson pays the taxes exactly 2 months late, calculate the amount...
-
Role of controller, role of chief financial officer. George Jimenez is the controller at Balkin Electronics, a manufacturer of devices for the computer industry. The company may promote him to chief...
-
In the following, assume that all growth and discount rates are stated in real terms. 1. Assume the Eurozone inflation-adjusted average growth in capital stock is 3.0 percent per annum into...
-
Which conclusion presented by Ryan about the top-down approach and the bottom-up approach is most likely correct? A. Conclusion 1. B. Conclusion 2. C. Conclusion 3. Use the following information to...
Study smarter with the SolutionInn App