Question: Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $155,000, she receives a liquidating distribution of $38,750 cash and a proportionate share of inventory

Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $155,000, she receives a liquidating distribution of $38,750 cash and a proportionate share of inventory having a partnership basis of $54,250 and a fair market value of $62,000. The distribution results in a liquidation of both the partnership and her interest. a. How much is Magdalena's basis in the inventory received? 20,000 X $1 b. What is the amount of any gain or loss recognized on the liquidation? She has a recognized a capital loss of $ 23,000 X on the liquidation. Feedback Check My Work

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. Exercise 11-14 (Algorithmic) (LO. 3) When Magdalena's outside basis is $132,500, she receives a liquidating distribution of $33,125 cash and a proportionate share of inventory having a partnership...

Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $277,500, she receives a liquidating distribution of $69,375 cash and a proportionate share of inventory having a partnership...

Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $120,000, she receives a liquidating distribution of $30,000 cash and a proportionate share of inventory having a partnership...

Using the excel template, Calculate various ratios to evaluate Target's financial position, operational efficiency, profitability, and its competitor, Target, for the fiscal years ending 2018, 2019,...

If I need to I can list these questions separately and also provide more of the annual report if needed. Thanks for the help! I need help. I have been asked to review the the 2018 Annual Report (Form...

Hi I know you opted out of an earlier question. I have several open questions. I really need to get them in. Would you be willing to take any of these questions? I have been waiting for 3 days. I...

use the posted answer sheet for your answers. Your answer sheet is to be uploaded no later than 11 p.m. Saturday, December 7, 2013 to the Final Exam area by clicking on the Final Exam link. Be sure...

I need to get help with this case study PwC Case Studies in Taxation, 2013, PwC, LLP FLATIRONS, INC. Flatirons, Inc. (dba Flatirons Flapjacks Caf) specializes in unique breakfast and brunch menus and...

I really need help with this question. I have been trying to get it answered for days. ref Mimi PwC Case Studies in Taxation, 2013, PwC, LLP MIMI'S CUPCAKES Your business tax client, Mimi...

MOLSON COORS BREWING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN MILLIONS, EXCEPT PER SHARE DATA) For the Years Ended . .. ... .- -..m. at December 31, 2013 December 29, 2012...

Which of the following items would not be classified as either cash or a cash equivalent for purposes of the statement of cash flows? a. Money market account funds. b. Treasury bill that matures in...

Huckleberries Chocolatiers is located in Sudbury, Ontario and well known for its classic and customized chocolates and chocolate products. The latest product of the company is the hot chocolate...

which of the following is a factor that can cause yields on debt securities to vary: credit risk, callability, amount, rating

According to the World Economic Forum video titled "What is the Fourth Industrial Revolution," what is one responsibility that society needs to take regarding technological challenges? Redefining...

The Leadership Grid states that the one best style to use in all situations is the 9,9 team manager style, with a high concern for both people and production. Do you agree with this statement?

Fiedlers contingency leadership theory states that managers cant change their leadership style; they are either task- or relationship-oriented. Do you agree with this statement?

After reading this case and viewing the video, describe whether you think Steve Jobs was passive, aggressive, passiveaggressive, or assertive.