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onomic effect. Robin and Allison form a partnership to operate an ice cream iness. Robin contributes her ice cream maker that has a tax basis

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onomic effect. Robin and Allison form a partnership to operate an ice cream iness. Robin contributes her ice cream maker that has a tax basis of $200 and a value of $600. The ice cream maker is depreciable on a straight-line basis over six years. Allison contributes investment assets that she has held for many years with a tax basis of $100 and a value of $600; the partnership will liquidate the investment assets as its cash needs dictate. Robin 10. and Allison agree to share all profits and losses equally. a. If, six months after its formation, the partnership sells all the investment assets for $800, how is the $700 of gain allocated? What is the character of the gain? Assume the same facts as in Question 10a and that the partnership uses the $800 in proceeds from the sale of the investment assets to purchase the raw materials necessary to make ice cream. Assume the ice cream maker has two years left of its six-year depreciable life and is depreciated on a straight-line basis. How is the depreciation allocated if the partnership uses the traditional method? The traditional method with curative allocations? The remedial allocation method? onomic effect. Robin and Allison form a partnership to operate an ice cream iness. Robin contributes her ice cream maker that has a tax basis of $200 and a value of $600. The ice cream maker is depreciable on a straight-line basis over six years. Allison contributes investment assets that she has held for many years with a tax basis of $100 and a value of $600; the partnership will liquidate the investment assets as its cash needs dictate. Robin 10. and Allison agree to share all profits and losses equally. a. If, six months after its formation, the partnership sells all the investment assets for $800, how is the $700 of gain allocated? What is the character of the gain? Assume the same facts as in Question 10a and that the partnership uses the $800 in proceeds from the sale of the investment assets to purchase the raw materials necessary to make ice cream. Assume the ice cream maker has two years left of its six-year depreciable life and is depreciated on a straight-line basis. How is the depreciation allocated if the partnership uses the traditional method? The traditional method with curative allocations? The remedial allocation method

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