Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV $ 96,300 $ 96,300 192,600 452,700 $288,900 $549,000 Assets: Cash Land Totals Liabilities and capital: Capital -Amy -Brittany -Ben Totals 96,300 96,300 96,300 $288,980 What is the amount and character of Brittany's recognized gain or loss on the sale? $183,000 of ordinary income and $183,000 of capital gain $3,000 of ordinary income and $11,000 of capital gain $86,700 of capital loss $86,700 of capital gain Neither gain nor loss recognized Required information The following information applies to the questions displayed below.) Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV $ 96,300 $ 96,300 192,600 452,700 $288,900 $549,000 Assets: Cash Land Totals Liabilities and capital: Capital -Amy -Brittany -Ben Totals 96,300 96,300 96,300 $288,900 c. If Westlake were to sell the land for $452,700 shortly after the sale of Brittany's partnership interest, how much gain or loss would the partnership recognize? [The following information applies to the questions displayed below.) Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV $ 96,300 192,600 $288,900 $ 96,300 452,700 $549,000 Assets: Cash Land Totals Liabilities and capital: Capital -Amy -Brittany -Ben Totals 96,300 96,300 96,300 $288,900 d. How much gain or loss would Michelle recognize if the land were sold for $452,700? D_ FO Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV $ 96,300 $ 96,300 192,600 452,700 $288,900 $549,000 Assets: Cash Land Totals Liabilities and capital: Capital - -Brittany -Ben Totals 96,300 96,300 96,300 $288,900 e1. Suppose Westlake has a 5754 election in place. What is Michelle's special basis adjustment? e2. Suppose Westlake has a $754 election in place. How much gain or loss would Michelle recognize on a subsequent sale of the land in this situation? Complete this question by entering your answers in the tabs below. Req E1 Req E2 Suppose Westlake has a $754 election in place. What is Michelle's special basis adjustment? Special basis adjustment Reg Req E2 > Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV $ 96,300 $ 96,300 192,600 452,700 $288,900 $549,000 Assets: Cash Land Totals Liabilities and capital: Capital -Amy -Brittany -Ben Totals 96,300 96,300 96,300 $288,900 e1. Suppose Westlake has a 5754 election in place. What is Michelle's special basis adjustment? e2. Suppose Westlake has a 5754 election in place. How much gain or loss would Michelle recognize on a subsequent sale of the land in this situation? Complete this question by entering your answers in the tabs below. Req E1 Reg E2 Suppose Westlake has a 5754 election in place. How much gain or loss would Michelle recognize on a subsequent sale of the land in this situation?
