Question
The equal XYZ Partnership has the following balance sheets: Basis FMV Cash $54,000 $54,000 Land $15,000 $42,000 Unrealized Receivables $0 $15,000 Collectibles $3,000 $9,000 $72,000
The equal XYZ Partnership has the following balance sheets:
|
|
| Basis | FMV | |||
| Cash |
| $54,000 | $54,000 | |||
| Land |
| $15,000 | $42,000 | |||
| Unrealized Receivables | $0 | $15,000 | ||||
| Collectibles | $3,000 | $9,000 | ||||
|
|
| $72,000 | $120,000 | |||
|
|
|
|
| |||
| Liabilities |
| $30,000 | $30,000 | |||
|
|
|
|
| |||
| Capital, X |
| $14,000 | $30,000 | |||
| Capital, Y |
| $14,000 | $30,000 | |||
| Capital, Z |
| $14,000 | $30,000 | |||
|
|
| $72,000 | $120,000 | |||
XYZ has a Code Section 754 election in effect, and X sells her interest to W for $30,000 cash. How much is the Code Sec. 743(b) adjustment?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Internal Audit Practice From A To Z
Authors: Patrick Onwura Nzechukwu
1st Edition
149874205X, 978-1498742054
