On May 31, six brothers decided to form the Garth Brothers Partnership to publish and print children's stories. The contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from liabilities according to their partnership interests. (Click the icon to view the contributions.) The following other information about the contributions may be of interest: (Click the icon to view the other information.) Read the requirements. BER Requirement a. How much gain, loss, or income must each partner recognize as a result of the formation? Identify the gain, loss, or income that each partner must recognize as a result of the formation, one partner at a time. (If no gain, loss, or income is recognized by a partner, enter a "0" in the amount column and leave the description column blank.) Amount of Gain, Individual Loss, or Adam Requirements a. How much gain, loss, or income must each partner recognize as a result of the formation? b. How much gain, loss, or income must the partnership recognize as a result of the formation? c. What is each partner's basis in his partnership interest? d. What is the partnership's basis in its assets? e. What is the partnership's initial book value of each asset? f. What effects do the depreciation recapture provisions have on the property contributions? g. How would your answer to Part a change if Frisco received only a profits interest? h. What are the tax consequences to the partners and the partnership when the partnership sells for $155,000 the land contributed by Demetrius? Prior to the sale, the partnership held the land as an investment for two years. Print Done Heln Me Solve Thi k Answer On May 31, six brothers decided to form the Garth Brothers Partnership to publish and print children's stories. The contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from liabilities according to their partnership interests. (Click the icon to view the contributions.) The following other information about the contributions may be of interest: (Click the icon to view the other information.) Read the requirements .... Requirement a. How much gain, loss, or income must each partner recognize as a result of the formation? Identify the gain, loss, or income that each partner must recognize as a result of the formation, one partner at a time. (If no gain, loss, or incom is recognized by a partner, enter a "0" in the amount column and leave the description column blank.) Amount of Gain Individual Loss, or Data Table Adam Basis to Partner Partnership Interest Individual Asset FMV 80,000 $ 10% 0 25% Adam Brady Calvin Demetrius Efrem Frisco 15% Cash Accounts receivable Office equipment Land Building Services 80,000 200,000 120,000 160,000 230,000 115,000 190,000 25,000 ? 20% 15% 120,000 15% Print Done
