The BI Partnership pays its only liability (a $80,000 mortgage) on April 1 of the current year and terminates that same day. Becky and lan were equal partners in the partnership but have partnership bases immediately preceding these transactions of $70,000 and $200,000, respectively, including his or her share of liabilities. The two partners receive identical distributions with each receiving the following assets: 5 Click the icon to view the assets.) Read the requirement. --- Begin by computing each partner's basis to be allocated. lan $ Becky 70,000 $ (40,000) $ 200,000 (40,000) Basis preceding transactions Minus: Liability reduction Basis before distributions Minus: Cash distribution Basis to be allocated 30,000 $ 160,000 (26,000) $ (26,000) 4,000 $ 134,000 ns FMV Does each partner have enough basis to allocate to the inventory and receivables? Becky No lan Yes Data Table Determine Becky's basis in the inventory and intermediary calculations. Only round the am of basis decrease.) Assets Partnership's Basis Cash 26,000 $ FMV of asset Inventory 31,000 Minus: Receivables 6,200 Difference Building 20,000 Step 1: Partnership's basis for the asset Land 23,000 $ Minus: 106,200 $ Total GA 26,000 33,200 4,000 75,000 13,000 151,200 Decrease to allocate The building has no depreciation recapture potential. The BI Partnership pays its only liability (a $80,000 mortgage) on April 1 of the current year and terminates that same day. Becky and lan were equal partners in the partnership but have partnership bases immediately preceding these transactions of $70,000 and $200,000, respectively, including his or her share of liabilities. The two partners receive identical distributions with each receiving the following assets: (Click the icon to view the assets.) Read the requirement ---- (26,000) Minus: Cash distribution Basis to be allocated (26,000) $ 4,000 $ GA 134,000 Does each partner have enough basis to allocate to the inventory and receivables? Becky No lan Yes Determine Becky's basis in the inventory and receivables. (Complete all answer boxes. Enter a "O" for any zero amounts. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign for allocations of basis decrease.) Inventory Receivables Total FMV of asset Minus: Difference Step 1: Partnership's basis for the asset Minus: Decrease to allocate Step 2: Asset basis after Step 1 Adjusted basis Step 3: Becky's basis in the assets The BI Partnership pays its only liability (a $80,000 mortgage) on April 1 of the current year and terminates that same day. Becky and lan were equal partners in the partnership but have partnership bases immediately preceding these transactions of $70,000 and $200,000, respectively, including his or her share of liabilities. The two partners receive identical distributions with each receiving the following assets: 5 Click the icon to view the assets.) Read the requirement. --- Begin by computing each partner's basis to be allocated. lan $ Becky 70,000 $ (40,000) $ 200,000 (40,000) Basis preceding transactions Minus: Liability reduction Basis before distributions Minus: Cash distribution Basis to be allocated 30,000 $ 160,000 (26,000) $ (26,000) 4,000 $ 134,000 ns FMV Does each partner have enough basis to allocate to the inventory and receivables? Becky No lan Yes Data Table Determine Becky's basis in the inventory and intermediary calculations. Only round the am of basis decrease.) Assets Partnership's Basis Cash 26,000 $ FMV of asset Inventory 31,000 Minus: Receivables 6,200 Difference Building 20,000 Step 1: Partnership's basis for the asset Land 23,000 $ Minus: 106,200 $ Total GA 26,000 33,200 4,000 75,000 13,000 151,200 Decrease to allocate The building has no depreciation recapture potential. The BI Partnership pays its only liability (a $80,000 mortgage) on April 1 of the current year and terminates that same day. Becky and lan were equal partners in the partnership but have partnership bases immediately preceding these transactions of $70,000 and $200,000, respectively, including his or her share of liabilities. The two partners receive identical distributions with each receiving the following assets: (Click the icon to view the assets.) Read the requirement ---- (26,000) Minus: Cash distribution Basis to be allocated (26,000) $ 4,000 $ GA 134,000 Does each partner have enough basis to allocate to the inventory and receivables? Becky No lan Yes Determine Becky's basis in the inventory and receivables. (Complete all answer boxes. Enter a "O" for any zero amounts. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign for allocations of basis decrease.) Inventory Receivables Total FMV of asset Minus: Difference Step 1: Partnership's basis for the asset Minus: Decrease to allocate Step 2: Asset basis after Step 1 Adjusted basis Step 3: Becky's basis in the assets
