Question
The XYZ partnership has the following balance sheet: Basis FMV Land $60,000 $81,000 Inventory $27,000 $54,000 Unrealized Rec. $ 0 $15,000 Liabilities $30,000 $30,000 Capital,
The XYZ partnership has the following balance sheet:
| Basis | FMV | |||
| Land | $60,000 | $81,000 | ||
| Inventory | $27,000 | $54,000 | ||
| Unrealized Rec. | $ 0 | $15,000 | ||
| Liabilities | $30,000 | $30,000 | ||
| Capital, X | $21,000 | $40,000 | ||
| Capital, Y | $18,000 | $40,000 | ||
| Capital, Z | $18,000 | $40,000 | ||
| $87,000 | $150,000 | |||
If X sells her partnership interest to W for $40,000 cash ($10,000 this year and $30,000 next year), what is her gain or loss each year, and what is its character? (Assume each partner has a 1/3 share of liabilities.)
PLEASE READ THE REQUIREMENT CAREFULLY.
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
