James contributed property worth $80k, with an adjusted basis of $10k for 25% interest in a partnership.

Fantastic news! We've Found the answer you've been seeking!

Question:

James contributed property worth $80k, with an adjusted basis of $10k for 25% interest in a partnership. During the first year, partnership had gains of 200k taxable income and a tax-exempt gain of $4k. His share of recourse was $20k on the last day of the partnership. $10k distribution in cash received from partnership. What is James’s adjusted basis for his partnership interest at the end of the tax year? Please include an explanation.

Posted Date: Oct 10, 2021 05:29 PM

See More Questions

On February 24, 2016, Allison's building, with an adjusted basis of $1.3 million (and used in her trade or business), is destroyed by fire. On March 31, 2016, she receives an insurance reimbursement...
In 2018, Andrew contributed equipment with an adjusted basis of $20,000 and an FMV of $18,000 to Construction Limited Partnership (CLP) in return for a 3% limited partnership interest. Andrews share...
During the first year of operation, 2013, Ferrells Appliance recognized $261,000 of service revenue on account. At the end of 2013, the accounts receivable balance was $46,300. Even though this is...
Engineers observe that about 90% of graphite samples fracture within five hours when subjected to a certain stress. (a) If the time to fracture is modeled with an exponential distribution, what would...
Why might the bond market be considered less efficient than the stock market?
Worksheet, Statement of Financial Position, Adjusting and Closing Entries Cooke Company has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presentedbelow....
A current loop lies in the $x y$ plane of an $x y z$ coordinate system, with the current circulating counterclockwise when viewed looking down the positive $z$ axis toward the origin. The loop...
In what ways was the project scope expanded? Would you consider this to be scope creep? MINI CASE Reggie Brown, B&W Nuclear Service Companys (BWNS) project manager for Nita Light and Powers Green...
a) Market refers to the mechanism through which all goods and services are voluntarily exchanged among different owners. Through price, markets allocate scarce resources among competing uses. Discuss...
Sing, Inc., is a taxable domestic C corporation. On January 1, 2017, of its 2,000 issued and outstanding shares, 1,575 were owned by Snap, while the remaining 425 shares were owned by unrelated...
In this problem, we want to create a spreadsheet to help someone estimate their income in retirement. To do this, we will have them enter several numbers: the amount of money currently in savings,...
Imagine that you were a new CFO of Beily Inc., a childrens bicycle manufacturer. The president, Mr. Zhao, started the business 2 years ago. The firm manufactures two types of products, bicycles for...
Top Performance has been operating for several years in the outskirts of Ostersund, Sweden, and is a new manufacturer of a top-of-the-line outdoor jacket. You are starting an internship as assistant...
The debt and equity section of the TOTAL Group balance sheet is shown here (in million euros). The current market price of the common shares is 200. Reconstruct the financial statement assuming that...
The General Meeting of Remy Cointreau SA, listed on Euronext Paris, held in July 2015, set the overall dividend at 1.53 per share. The Meeting decided to grant every shareholder payment of the...
Door Company sells products in cash and in credit as follows: cash sales are 60 percent of total sales, and credit sales are 40 percent. 10 percent of the credit sales are collected in the month of...
Which type of managerial approach is more effective when supervising professionals? Bureaucratic Autocratic Authoritarian Consultative or participative
Inexhaustible collections of ONPOs are not required to be capitalized or depreciated, if certain criteria are met. Why is this so, and what accounting and reporting recognition, if any, is required...
Depository institutions have been losing their advantage over other financial intermediaries in attracting customers funds. Why?
In the aftermath of the financial crisis of 20072009, there were calls to reinstate the separation of commercial and investment banking activities that was removed with the repeal of the...
The globalization of banking has led to the need for global benchmarks for interest rates. In light of the LIBOR scandal, what characteristic do you think is most central to any new interest rate...

James contributed property worth $80k, with an adjusted basis of $10k for 25% interest in a partnership.

Question:

Expert Answer:

Solution Answer is highlighted in yellow Solution 71000 Ans... View the full answer

Students also viewed these accounting questions