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I need some help on these two accounting questions that revolve around the taxation and treatment of Partnerships. Please let me know if additional info
I need some help on these two accounting questions that revolve around the taxation and treatment of Partnerships. Please let me know if additional info is needed!
QUESTION 2- Partnership Operations Kristie is a 30% partner in the KKM Partnership. Kaitlin and Morgan are 35% partners. During the current year, KKM reported gross receipts of $260,000 and a charitable contribution of $45,000. The partnership paid office expenses of $80,000. In addition, KKM distributed $20,000 each to partners Kaitlin and Morgan, and the partnership paid partner Kaitlin $30,000 for administrative services. What are the amounts Kristie, Kaitlin and Morgan report as income from KKM Partnership? Kristie: Kaitlin: Morgan: QUESTION 4 - Liquidating Distributions In a proportionate liquidating distribution, Ashleigh receives a distribution of accounts receivable (basis to the partnership of $0, fair market value of $40,000), and land (basis to the partnership of $40,000, fair market value of $50,000). In addition, the partnership repays all liabilities, of which Ashleigh's share was $70,000. Ashleigh's basis in the entity immediately before the distribution was $60,000, which includes her share of Partnership liabilities. As a result of the distribution, what is Ashleigh's basis in the accounts receivable and land, and how much gain or loss does she recognizeStep by Step Solution
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