Question
At the end of last year, Lisa, a 40% partner in the five-person LAMEC partnership, has an outside basis of $60,000 including her $30,000 share
At the end of last year, Lisa, a 40% partner in the five-person LAMEC partnership, has an outside basis of $60,000 including her $30,000 share of LAMEC debt. On January 1 of the current year, Lisa sells her partnership interest to MaryLynn for a cash payment of $45,000 and the assumption of her share of LAMECs debt. If LAMEC has $90,000 of unrealized receivables as of the sale date, what is the amount of Lisas ordinary income recognized as a result of the sale?
The answer is NOT 24,000.
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
