Question
1. The XYZ partnership had the following balance sheet: Basis FMV Cash $30,000 $30,000 Accounts Receivable 0 48,000 Land 36,000 93,000 Goodwill 0 15,000 $66,000
1. The XYZ partnership had the following balance sheet:
|
|
| Basis | FMV | |
| Cash |
| $30,000 | $30,000 | |
| Accounts Receivable | 0 | 48,000 | ||
| Land | 36,000 | 93,000 | ||
| Goodwill | 0 | 15,000 | ||
|
|
| $66,000 | $186,000 | |
|
|
|
|
| |
| Capital, X |
| $22,000 | $62,000 | |
| Capital, Y |
| 22,000 | 62,000 | |
| Capital, Z |
| 22,000 | 62,000 | |
|
|
| $66,000 | $186,000 | |
X receives a payment of $62,000 cash upon his retirement from the partnership. X was a general partner, capital was not a material income-producing factor for the partnership, and the partnership agreement said nothing about making payments to a retiring partner for their share of goodwill. How would the retirement payment be treated by X and the partnership?
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Internal Revenue Service Status Of GAO Financial Audit And Related Financial Management Recommendations
Authors: Government Accountability Office
1st Edition
1492351571, 978-1492351573
