The Whitewater LLP is equally owned by three partners and shows the following balance sheet at...
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The Whitewater LLP is equally owned by three partners and shows the following balance sheet at the end of the current tax year. Basis FMV Cash $94,500 $94,500 Unrealized receivables -0- 31,500 Land 31,500 126,000 $126,000 $252,000 Petula, capital $42,000 $84,000 Prudence, capital 42,000 84,000 Primrose, capital 42,000 ৪4,000 $126,000 $252,000 Partner Petula is an active (i.e., "general") partner retiring from the service-oriented partnership. She receives $94,500 cash, none of which is stated to be for goodwill. a. How much of the payment is for "unstated goodwill?" The distribution results in "unstated goodwill" of s 0 x . b. How is the $94,500 allocated between a 5 736(a) income payment and a § 736(b) property payment? The $94,500 cash payment is allocated as follows: 5 736(a) income payment: $ 5 736(b) property payment: S The Whitewater LLP is equally owned by three partners and shows the following balance sheet at the end of the current tax year. Basis FMV Cash $94,500 $94,500 Unrealized receivables -0- 31,500 Land 31,500 126,000 $126,000 $252,000 Petula, capital $42,000 $84,000 Prudence, capital 42,000 84,000 Primrose, capital 42,000 ৪4,000 $126,000 $252,000 Partner Petula is an active (i.e., "general") partner retiring from the service-oriented partnership. She receives $94,500 cash, none of which is stated to be for goodwill. a. How much of the payment is for "unstated goodwill?" The distribution results in "unstated goodwill" of s 0 x . b. How is the $94,500 allocated between a 5 736(a) income payment and a § 736(b) property payment? The $94,500 cash payment is allocated as follows: 5 736(a) income payment: $ 5 736(b) property payment: S
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Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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