Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone answer the Req A3 and Req B1, Thank you! Problem 7-61 (LO 7-4) (Algo) Molly Grey (single) acquired a 30 percent limited partnership

image text in transcribed

can someone answer the Req A3 and Req B1, Thank you!

Problem 7-61 (LO 7-4) (Algo) Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $66,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $25,000. In year 1, Beau Geste incurs a loss of $207,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $64,800. This includes $18,500 of passive income from other passive activities. In year 2, Beau Geste earns income of $32,000. In addition, Molly contributes an additional $33,800 to Beau Geste during year 2. Molly's AGI in year 2 is $69,900 (excluding any income or loss from Beau Geste). This amount includes $15,900 in income from her other passive investments. a. Based on the above information, complete the requirements A1 to A3. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Based on the above information, complete the following table: Passive Passive At-Risk Activity Loss Activity Loss Allowed Allowed Disallowed $ 25,000 $ 18,500 $ 6,500 43,600 25,500 18,100 Year 1 Year 2 b. Based on the above information, complete the requirements B1 to B2. Complete this question by entering your answers in the tabs below. Req B1 Req B2 What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses $ 18,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Effect Of The Internal Auditing On Financial Performance

Authors: Shakir Al Ghalayini, Mohammed A. Keshta, Thabet M. Hassan

1st Edition

ISBN: 3656943052, 978-3656943051

More Books

Students also viewed these Accounting questions

Question

Discuss the role that IT plays in support of auditing?

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago