The equal XYZ Partnership has the following balance sheets: Basis FMV Cash $54,000 $54,000 Land $21,000 $42,000
Question:
The equal XYZ Partnership has the following balance sheets:
Basis FMV
Cash $54,000 $54,000
Land $21,000 $42,000
Unrealized Receivables $ 0 $15,000
Collectibles $3,000 $9,000
$78,000 $120,000
Liabilities $30,000 $ 30,000
Capital, X $12,000 $ 30,000
Capital, Y $18,000 $ 30,000
Capital, Z $18,000 $ 30,000
$78,000 $120,000
XYZ has a Code Section 754 election in effect, and X sells her interest to W for $30,000 cash. However, the land was contributed by X at a time when its FMV exceeded its basis by $6,000. How much is the Code Sec. 743(b) adjustment?
Expert Answer:
ANS WER The Code Sec 7 43 b adjustment is 12 000 WORK ING The Code Sec 7 43 b adjustment is ... View the full answer
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
