Joe has a 70% capital and profits interest in the JJM Partnership with a basis of $382,200, which includes his share of liabilities, when he decides to retire. Jack and Mike want to continue the partnership's business. On the date Joe retires (assume 2021), the partnership's balance sheet is as follows: (Click the icon to view the balance sheet.) Read the requirements. Requirement a. What are the tax implications for Joe, Jack, Mike, and the JJM Partnership if Jack and Mike each purchase one-half of Joe's partnership interest for a cash price of $195,300 each? Include in your answer the amount and character of the recognized gain or loss, basis of the partnership assets, and any other relevant tax implications. Begin by computing Joe's recognized gain or loss on each of the two sales (one to Jack and one to Mike). Data table building. Requirements a. What are the tax implications for Joe, Jack, Mike, and the JJM Partnership if Jack and Mike each purchase one-half of Joe's partnership interest for a cash price of $195,300 each? Include in your answer the amount and character of the recognized gain or loss, basis of the partnership assets, and any other relevant tax implications. b. What are the tax implications for Joe, Jack, Mike, and the JJM Partnership if the partnership pays Joe a liquidating distribution equal to 70% of each partnership asset other than cash plus $42,000 of cash? Assume the assets are easily divisible. Joe has a 70% capital and profits interest in the JJM Partnership with a basis of $382,200, which includes his share of liabilities, when he decides to retire. Jack and Mike want to continue the partnership's business. On the date Joe retires (assume 2021), the partnership's balance sheet is as follows: (Click the icon to view the balance sheet.) Read the requirements. Requirement a. What are the tax implications for Joe, Jack, Mike, and the JJM Partnership if Jack and Mike each purchase one-half of Joe's partnership interest for a cash price of $195,300 each? Include in your answer the amount and character of the recognized gain or loss, basis of the partnership assets, and any other relevant tax implications. Begin by computing Joe's recognized gain or loss on each of the two sales (one to Jack and one to Mike). Data table building. Requirements a. What are the tax implications for Joe, Jack, Mike, and the JJM Partnership if Jack and Mike each purchase one-half of Joe's partnership interest for a cash price of $195,300 each? Include in your answer the amount and character of the recognized gain or loss, basis of the partnership assets, and any other relevant tax implications. b. What are the tax implications for Joe, Jack, Mike, and the JJM Partnership if the partnership pays Joe a liquidating distribution equal to 70% of each partnership asset other than cash plus $42,000 of cash? Assume the assets are easily divisible
