Question: Nhia and Maya are each 50% owners (capital & profit/loss interest) of NM Partnership. Nhia contributed land (FMV = $100,000; AB = $10,000) to the

Nhia and Maya are each 50% owners (capital & profit/loss interest) of NM Partnership. Nhia contributed land (FMV = $100,000; AB = $10,000) to the partnership in exchange for her 50% interest, and Maya contributed $100,000 cash in exchange for her 50% partnership interest.

Assume that shortly after Nhia contributed the land, NM made a distribution of $100,000 to Nhia.

What amount of gain does Nhia recognize on the transaction?

Step by Step Solution

★★★★★

3.48 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Sale value of the Land 200000 Less FMV of the land when contributed 100000 Total ... View full answer

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!

The following response-time data (in msec) was obtained on Farmer Brown and his son Big John while operating a tractor using the right foot to control the clutch, brake and accelerator. The foot is...

Mercury is an environmental pollutant because it can be converted by certain bacteria into the very poisonous substance dimethyl mercury, (CH3)2Hg. This compound ends up in the food chain and...

Defining the Problem (1). Lead is an environmental pollutant especially worthy of attention because of its damaging effects on the neurological and intellectual development of children. Morton et al....

How many products are formed when compound B is decarboxylated? , -

Nicole and Braxton are each 50 percent shareholders of NB Corporation. Nicole is also an employee of the corporation. NB is a calendar-year taxpayer and uses the accrual method of accounting. The...

Tom and Mary are each age 36 and have three children, ages 4, 6, and 9. They are concerned about funding education. Also they are concerned about private high school education since the town they...

Attempts to achieve off-balance-sheet financing. (Adapted from materials by R. Dieter, D. Landsittel, J. Stewart, and A. Wyatt.) Shiraz Company wants to raise $50 million cash but, for various...

Sarah and Rex formed SR Entity on December 28 of last year. The entity operates on a calendar tax year. Each individual contributed $800,000 cash in exchange for a 50% ownership interest in the...

MINI CASE MOUNTAIN SPRING DISTRIBUTORS LIMITED ( MSDL ) The following case details the activities of a mid - sized Jamaican company over the five - year period 2 0 1 9 to 2 0 2 4 . The financial year...

The Foggy Bottom Development Corporation has just purchased a small hotel for conversion to condominium apartments. The building, in a popular area of Washington, D.C., near the U.S. State...

Assume that you are using the indirect method of preparing a statement of cash flows. For each of the changes listed, indicate whether it would be added to or subtracted from net income in computing...

Let T represent the temperature (in F) of an object in a room whose temperature is kept at a constant 60. If the object cools from 100 to 90 in 10 minutes, how much longer will it take for its...

Solve the given initial - value problem. y ' ' + 4 y = - 1 , y ( 8 ) = 3 4 , y ' ( 8 ) = 2

Assign link frames to the following mechanism and find the modiefied DH (Denavit-Hartenberg) parameters: FIGURE 3.37: Three-link RRP manipulator (Exercise 3.17

Milwaukee Manufacturing Company presents the following partial list of account balances, after adjustments, as of December 31, 2019: Sales Salaries Expense $ Sales Personnel Travel $ 8,300 27,400...

A buying center is a group of individuals in an organization that work together to make better buying decisions for those organizations. They are often used to provide a larger amount of knowledge or...

Shela is single and works for a law firm. In the 2020 tax year, she made $110,000 this year in salary and $10,000 of gross interest income from a corporate bond. Her law firm withheld $16,000 of tax...

these stOCKS prepare mM EDT 4. You are asked to prepare a 200ml stock of 20% (w/v) Sodium Dodecyl Sulfate (SDS, 288.37 g/mol). This is provided to you as a white powder. How would you prepare this?...

The two nervous systems control involuntary bodily functions that work together in the sense of keeping the body in homeostasis while responding to external stimuli. Sympathetic is referred to as...

1.) William, Xavier and Zelda formed WXZ Partnership. William contributed land with a fair market value of $50,000 (basis of $10,000) in exchange for a 50% interest (capital and profits/losses)....

Nhia and Maya are each 5 0 % owners ( capital & profit / loss interest ) of NM Partnership. Nhia contributed land ( FMV = $ 1 7 5 , 0 0 0 ; A B = $ 2 7 , 0 0 0 ) to the partnership in exchange for...

Nhia and Maya are each 50% owners (capital & profit/loss interest) of NM Partnership. Nhia contributed land (FMV = $100,000; AB = $10,000) to the partnership in exchange for her 50% interest, and...

QUESTION ONE: Case Study Analysis: Digitalizing Claims Management at National Health Insurance Scheme (NHIS) Background The National Health Insurance Scheme (NHIS) is financed primarily by tax...