Question
The XYZ partnership has the following balance sheets: Basis FMV Land $40,000 $52,000 Inventory $20,000 $40,000 Unrealized Rec. $0 $25,000 Liabilities $12,000 $12,000 Capital, X
The XYZ partnership has the following balance sheets:
|
|
| Basis | FMV | |
| Land |
| $40,000 | $52,000 | |
| Inventory |
| $20,000 | $40,000 | |
| Unrealized Rec. | $0 | $25,000 | ||
|
|
|
|
| |
| Liabilities |
| $12,000 | $12,000 | |
|
|
|
|
| |
| Capital, X |
| $16,000 | $35,000 | |
| Capital, Y |
| $16,000 | $35,000 | |
| Capital, Z |
| $16,000 | $35,000 | |
|
|
| $60,000 | $117,000 | |
If partner X (1/3 partner) sells his partnership interest (holding period = two years) to W for $30,000 cash, how much income will X recognize, and what will be its character?
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Financial Accounting A User Perspective
Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry
4th Canadian Edition
0470834455, 978-0470834459
