Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need to get help with those three attached questions for Federal Taxation 1) An examination of the RB Partnership's tax books provides the following

I need to get help with those three attached questions for Federal Taxation

image text in transcribed 1) An examination of the RB Partnership's tax books provides the following information for the current year: Qualified dividend income Operating Revenues Guaranteed payment to Barry for consulting services rendered Mortgage interest paid MACRS Depreciation expense Cash distributions to each partner Interest on Georgia state bonds (exempt interest income) Interest paid on funds used to purchase Georgia state bonds Charitable contributions made by partnership Employee Wage Expense Increase in partnership liabilities from 1/1-12/31 Advertising and selling expenses paid $4,000 $450,000 $25,000 $15,000 $40,000 $30,000 $2,000 $500 $4,000 $150,000 $30,000 $20,000 Barry is a 30% partner in partnership capital, profits, and losses. Assume the adjusted basis of his partnership interest is $50,000 at the beginning of the year, and he shares in 30% of the partnership liabilities for basis purposes. a) What is the partnership ordinary income? b) What items must be separately stated? c) What is Barry's adjusted basis in his partnership interest at year end? 2) Joel and Desmond are forming the JD Partnership. Joel contributes $300,000 cash and Desmond contributes nondepreciable property with an adjusted basis of $80,000 and a fair market value of $330,000. The property is subject to a $30,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes. Joel and Desmond are equal partners. a. What is Desmond's adjusted tax basis for his partnership interest immediately after the partnership is formed? b. What is the partnership's adjusted basis for the property contributed by Desmond? c. If the partnership sells the property contributed by Desmond for $360,000, how is the tax gain allocated between the partners? 3) On January 1, 2012, Martha Carnes, fresh out of college, contributed $10,000 for a 30% interest in an accounting partnership (a general partnership). The senior partner was not attentive to the work, and the first year they were sued for malpractice and a judgment of $100,000 was entered against the firm. The firm borrowed $50,000 recourse debt in 2012 to assist in its payment. The debt was paid in full in 2015. The following shows the results of partnership operations: Year 2012 2013 2014 2015 Income (Loss) ($100,000) $10,000 $50,000 $100,000 Compute Martha's outside basis in her partnership income for each year 2012, 2013, 2014, 2015

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

Accounting Best Practices

Authors: Steven M Bragg

7th Edition

1118404149, 9781118404140

More Books

Students also viewed these Accounting questions

Question

Why would CPAs prefer to avoid estimates in financial reporting?

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago