Business, 25.11.2021 14:00 genyjoannerubiera

Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership and has an outside basis in his/her partnership interest of $104,000. On January 1 of the current year, Marco sells his partnership interest to Ryan for a cash payment of $137,000. The partnership has the following assets and no liabilities as of the sale date: Tax Basis FMV
Cash $18,000 $18,000
Accounts receivable 0 12,000
Inventory 69,000 81,000
Equipment 180,000 225,000
Stock investment 45,000 75,000
Totals $312,000 $411,000

The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago.

Required:
a. What are the hot assets for this sale?
b. What is the character of Marco’s gain or loss?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 15:20

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Answers: 3

Answer

Business, 22.06.2019 17:30

Gary lives in an area that receives high rainfall and thunderstorms throughout the year. which device would be useful to him to maintain his computer?

Answers: 2

Answer

Business, 23.06.2019 00:30

Three years ago, the city of recker committed to build a park and music venue by the river. it was expected to cost $2.5 million and be paid for from an additional meals tax in the community. the residents pushed back. local restaurants suffered as people ate out less or patronized restaurants in neighboring communities. the project has stalled, but the town council kept pushing it on. this spring, a flood devastated the venue. the town council appears to have suffered from bias

Answers: 3

Answer

Business, 23.06.2019 22:30

The total combined lifetime value of a company's current and potential customers is called a. customer loyalty b. customer equity c. market share d. customer retention e. share of customer

Answers: 2

Answer

You know the right answer?

Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cas...

Questions