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At year - end, Barbara sells her 1 / 3 interest in the ABC Partnership to James for $ 1 4 3 , 0 0
At yearend, Barbara sells her interest in the ABC Partnership to James for $ cash. At the beginning of the year, the partnership had liabilities totaling $ and Barbara's basis in her partnership interest totaled $ which included her share of partnership liabilities. The partnership has net income of $ for the current year. On the date of the sale yearend the basis and the agreed fair market values of the partnerships assets and liabilities are as follows: Basis Market Value Cash $ $ Accounts Receivable Inventory Land Accounts Payable Required: a Using good form, determine Barbaras recognized gain or loss from the sale and also the character of the gain or loss. b Assume that Barbaras basis in her partnership interest at the beginning of the year was $ instead of $ Given this new fact, using good form, determine Barbaras recognized gain or loss and also the character of the gain or loss.
At yearend, Barbara sells her interest in the ABC Partnership to James for $ cash. At
the beginning of the year, the partnership had liabilities totaling $ and Barbara's basis in her
partnership interest totaled $ which included her share of partnership liabilities. The
partnership has net income of $ for the current year. On the date of the sale yearend the
basis and the agreed fair market values of the partnerships assets and liabilities are as follows:
Basis Market Value
Cash $ $
Accounts Receivable
Inventory
Land
Accounts Payable
Required:
a Using good form, determine Barbaras recognized gain or loss from the sale and also the
character of the gain or loss.
b Assume that Barbaras basis in her partnership interest at the beginning of the year was
$ instead of $ Given this new fact, using good form, determine Barbaras
recognized gain or loss and also the character of the gain or loss.
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