If A contributes accounts receivable with a fair market value of ($50,000) and zero adjusted basis to

Question:

If A contributes accounts receivable with a fair market value of $$50,000$ and zero adjusted basis to a partnership, what are the tax consequences to A in the following circumstances?

(a) The partnership sells the receivables in Year 1 for $$50,000$ ?
(b) The partnership sells the receivables in Year 6 for $$50,000$ ?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Partnership Taxation

ISBN: 9781642428926

9th Edition

Authors: Stephen Schwarz, Daniel Lathrope, Brant Hellwig

See More Books

Question Posted: Apr 23, 2024 02:00 AM

See More Questions

Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
1. Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of...
An auditor most likely would perform substantive procedures of details on payroll transactions and balances when O Analytical procedures indicate unusual fluctuations in recurring payroll entries. O...
Besides warehouse layout decisions, what are some other applications where ranking items according to bang/buck might make sense?
Assume Frelix Construction Ltd. completed the following selected transactions during the year 2014: Apr. 19 Declared a cash dividend on the $8.50 preferred shares (3,000 shares outstanding). Declared...
How are fixed and variable labour costs distinguished?
20. Consider again the Netscape PEPS discussed in this chapter and assume the following: the price of Netscape is $39.25, Netscape is not expected to pay dividends, the interest rate is 7%, and the...
BookWeb, Inc., sells books and software over the Internet. A recent article in a trade journal has caught the attention of management because the company has experienced soaring inventory handling...
Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory...
If A, a car dealer, contributes cars with a fair market value of $$100,000$ and an adjusted basis of $$60,000$ to the ABC partnership, what are the tax consequences to A under the following...
A and B form the AB equal general partnership. A contributes $$50,000$ cash and a depreciable asset with a fair market value of $$50,000$ and an adjusted basis of $$20,000.$ Assume the property...
Which of the following reactions is spontaneous? 2+ 3 Zn+ + 2 Al-3 Zn + 2 A1+ (a) (b) 3 Zn + 2 2+ Al+3 Zn+ + 2 Al
Brice Looney owns a small retail ice cream parlor. He is considering expanding the business and has identified two attractive alternatives. One involves purchasing a machine that would enable Mr....
A positively charged particle initially at rest on the ground moves $4.0 \mathrm{~m}$ upward in $2.00 \mathrm{~s}$. If the particle has a chargeto-mass ratio of $10 \mu \mathrm{C} / \mathrm{g}$...
Central States Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Central States purchased goodwill as part of the acquisition of Sheldon Wireless Company, which had...
Shown below is selected information from the financial records of Merris Corporation as of December 31: Required a. Determine which of the above items will appear on the statement of cash flows and...
Pippa runs a photographic studio specializing in black and white portrait photography. Clients book a one hour studio session and are entitled to receive two large photographs of their choice from...
Kiplingers listed the top 100 public colleges based on many factors. From that list, here is the average debt at graduation for various schools in four selected states. At = 0.05, can it be...
What are conversion costs? What are prime costs?
Saly paid $52,000 a year paid on a weekly basis. last pay she had $250 withheld in Income Tax, $48.97 for CPP and $15.80 for EI. an additional $and 25.00 in tax are deducted each pay. She allowed to...
Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits...
Which of the following partnership items are not included in the self-employment income calculation? Ordinary income. Section 179 expense. Guaranteed payments. Gain on the sale of partnership...

If A contributes accounts receivable with a fair market value of ($50,000) and zero adjusted basis to

Question:

Step by Step Answer:

Partnership Taxation

Students also viewed these Business questions