At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB =
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Question:
At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW Partnership. KW reported the following income and expenses for the current tax year:
- Sales revenue: $700,000
- 1231 gain: $60,000
- Long-term capital loss: $10,000
- Qualified dividends: $10,000
- W-2 wages paid to employees: $200,000
- Utilities: $140,000
- Rent: $180,000
No distributions were made this year.
What is Kanye’s 704(b) book capital account balance at the end of the tax year?
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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