Question: Johnson contributes property to a partnership with a $ 4 0 0 , 0 0 0 value and a $ 3 0 0 , 0

Johnson contributes property to a partnership with a $400,000 value and a $300,000 basis for a 10% interest in the partnership. One month after the contribution, the partnership borrows $300,000 and distributes $230,000 of this amount to Johnson. Johnson is assigned a $30,000 share of this partnership liability. What amount of gain must be recognized by Johnson on this distribution?

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!

Q:

NB: YOU ARE ONLY REQUIRED TO DO THE DOUBLE ENTRY WHICH IS THE "T" ACCOUNTS Romeo Shakespeare is a retailer of love potions, which he sells in the Papen Market in St Thomas. 2020 February 1 Romeo...

Q:

Select ALL of the situations described below where the payments from a partnership to a partner may indicate that at least a partial disguised sale may have taken place. 1 Johnson contributes...

Q:

Problems Include all answers on this paper. Please keep answers brief - answer the question as you would to a client. Show your work . If you are unsure of an issue, state your assumption and related...

Q:

Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership is $16,000. If an amount is zero,...

Q:

Multiple choice Questions: 1. Which of the following is not a partnership for tax purposes? a. Willis and James purchase and operate a shoe store. b. Sharon and Gary operate an accounting practice...

Q:

Problem 14-09 (LO. 2) Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of...

Q:

JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 2017 76,450 25,439...

Q:

Please help me slove D i have tried $100,000 and $40,000 they are both wrong Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an...

Q:

please answer 1-A,B and 2-A,B Unit V - Partner-Partnership Transactions Problems 1. a. b. Partnership ABC, an accrual-method taxpayer, leases space from Partner A, a cash-method taxpayer, for $10,000...

Q:

A taxpayer contributes property with an Adjusted Basis of $75,000 and a Fair Market Value of $155,000 to his business entity. If the entity is an $ corporation and the transaction qualifies under...

Q:

Please answer the following and let me know what goes where 4. Drag and drop the appropriate words to complete, Three Essential Elements to Determine whet/Jere Partnershlb Exists: a. Mn) of prots or...

Q:

An exothermic reaction takes place in a jacketed CSTR as illustrated in Figure below The reactor temperature control configuration includes feedback (P only) control on the jacket temperature...

Q:

Obtain the inverse Laplace transforms of the following functions: (a) (b) Y(s) = 1/s(s + 1)2 (c) Z(s) 1/s(s + 1) (s2 + 6s + 10) +5+55

Q:

Income Tax Withholding Methods ( LO 9 . 2 ) One of the primary differences between an "old" pre - 2 0 2 0 Form W - 4 and a "new" post - 2 0 1 9 Form W - 4 is: a . The old form can only be used for...

Q:

The Milankovitch theory of ice ages relates them to variations in the tilt of the earths axis, the shape of its orbit, and the time of year when the earth is closest to the sun. However, these...

Q:

Create a spreadsheet that takes eight values that a user inputs into eight different cells. Then create a row that transposes the cells to simulate a transposition cipher, using the example...

Q:

As shown, wind is blowing on a 55-gallon drum. Estimate the wind speed needed to tip the drum over. Work in SI units. The mass of the drum is 48 lbm, the diameter is 22.5 in., and the height is 34.5...

Q:

Simtex Ltd has invested 120,000 to date in developing a new type of shaving foam. The shaving foam is now ready for production and it has been estimated that the business will sell 160,000 cans a...

Q:

Which of the following 95% confidence intervals would lead us to reject H 0 : p = 0.30 in favor of H a : p 0.30 at the 5% significance level? a. (0.19, 0.27) b. (0.24, 0.30) c. (0.27, 0.31) d....

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

explain the circumstances when behavioural, output and clan controls should be used; LO1

Q:

describe the three different types of assessment and scorekeeping (efficiency, effectiveness and social tests) and explain the circumstances where each of them should be used; LO1

Q:

provide illustrations of the relationship between the five broad contingent factors described in Exhibit 17.1 and features of the management accounting system; LO1