QUESTION 26 Mona has a basis in her Partnership Interest of $21,000 when her interest is terminated in a Complete Liquidation Mona receives Cash of $9,000 and a Capital Asset with an Adjusted Basis to the Partnership of $11,000 and a Fair Market Value of $27,000. The adjustments (e. increase or decreases, if any, made by the Partnership to its remaining assets if an Optional Basis Adjustment Election is in effect is O $8,000 Increase. $1,000 Decrease. O $8,000 Decrease. O $1,000 Increase.
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- QUESTION 14 Trevi has a basis in her Partnership Interest of $50,000 when her Interest is terminated In a Complete Liquldation. Trevi recelves a Capital Asset having a Fair Market Value of $30,000 and an Adjusted Basis to the Partnership of $40,000. The adjustment made by the Partnership to its remaining assets if the Optional Basis Adjustment election is in effect is: O $40,000 Increase. O 550,000 Decrease. O $10,000 Decrease. O $10,000 Increase.Exercise 4: Division of Income the partnership of Benito, Carlos and Donato earned a net income of P20,000 in 2019. The following are the postings to their accounts in 2019: (Kindly see attached images, and there is no further information with the exercise. Kindly answer it w/ your knowledge. Thank you in advance) Instructions: Determine the distribution of the partnership net income under each of the following assumptions: Net income is divided based on the ending capital ratio inclusive of the drawing accounts. Interest of 12% is allowed on the average capital including the temporary changes therein and the balance is to be divided in the ratio of 3:4:3 between Benito, Carlos and Donato, respectively. Postings to the capital accounts during the first fifteen days of the month are to be considered as of the first day of the month and postings during the second half of the month are to be considered as of the end of the month. How much will be the share of each of the partners in a…Soultion for Part B Part B (2020) a. On December 31, 2020 new partner D invests other assets into the partnership for a one-quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 B 180,000 C 190,000 $ 570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A, B, and D. Bonus paid to C $ 18,000 Required 5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of…
- Alexander, Capital Bertrand, Capital Coloma, Capital $30,000 40,000 50,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 5 percent of the beginning capital balance. • Bertrand is allocated compensation of $10,000 per year. • Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. • Each partner is allowed to withdraw up to $3,000 cash per year. Assuming that the net income is $40,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year? Multiple Choice $62,100 $52,500 $51,900 $59,100QUESTION 5 The Balance Sheet of the equal MVR Partnership on August 31, 2020 is as follows: Cash - $300,000 (Adjusted Basis): $300,000 (Fair Market Value): Unrealized Receivables - $-0- (Adjusted Basis): $60,000 (Fair Market Value). Capital Assets - $210,000 (Adjusted Basis). $450.000 (Fair Market Value): Total Assets - $510,000 (Adjusted Basis): $810,000 (Fair Market Value). Notes Payable - $150.000 (Adjusted Basis) $150,000 (Fair Market Value) Capital Accounts: Mercedes Capital - $120,000 (Adjusted Basis). $220,000 (Fair Market Value). Veima Capital - $120,000 (Adjusted Basis): $220.000 (Fair Market Value), Rosetta Capital - $120,000 (Adjusted Basis) $220,000 (Falr Market Value). Total Liabilities And Partners' Capital - $510.000 (Adjusted Basis): $810,000 (Fair Market Value) Mercedes sells her interest in the partnership to someone outside of the Partnership for Cash of $220.000 and the assumption of her share of the Partnership Liablities. How much, if any, of the Gain or Loss is…Exercise 11-22 (Algorithmic) (LO. 10) Berdine has a basis of $203,000 in her partnership Interest and recelves land with an adjusted basis to the partnership of $487,200 in termination of her interest. Assume the partnership holds no Mot assets and the entire payment is a 5 736(b) payment with the tax treatment determined under the proportionate liquidating distribution rules. a. What is Berdine's basis in the distributed land? b. If an optional 5 754 adjustment-to-basis election is in effect, by what amount does the partnership adjust the basis of its remaining property? If that adjustment is allocated to depreciable property, to whom does the partnership allocate the resulting depreciation deductions?
- QUESTION 19 Joubert and Norman each have a fifty percent (50%) ownership interest in Denise Partnership. Each partner has an Adjusted Basis in her Partnership interest of $100,000. Denise Partnership's Taxable Income for the current year is $80,000 and it distributes 150,000 to each partner, Joubert's basis in her Partnership Interest at the end of the year is $140,000. O True FalseProblem #4 Distribution of Profits or Losses Based on Partners' Agreement Ables and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had P275,000 invested during all of 2019; Galang nad P200,000 invested from January 1 to August 31, and he invested another P75,000 on September 1. If profit was P800,000 during 2019, how much should each partner receive?Problem 11-33 (LO. 3, 13) Michelle has a basis in her partnership interest of $85,000. In a proportionate liquidating distribution of the partnership, Michelle receives $5,000 cash and a car (a § 1231 asset to the partnership) having a basis of $20,000 to the partnership and a fair market value of $30,000. Disregard any potential depreciation recapture on the car. a. How much gain or loss, if any, may Michelle recognize on the distribution?Michelle recognizes a gain of $ b. What basis will Michelle take in the car? c. Suppose Michelle's 18-year-old son uses the car for his personal use for one year before Michelle sells it for $28,000. (1) Does Michelle recognize any gain or loss? If so how much?
- Problem #3 Admission by Purchase of Interest or Investment of Assets Dolores Aguilar, Isolde Sustrina, and Beth Bigalbal are partners in Cavite Realty Company. Their capital balances as at July 31, 2019, are as follows: Aguilar, Capital - 450,000Sustrina, Capital- 150,000Bigalbal, Capital- 300,000 Each partner has agreed to admit Nelia Pascual to the partnership. Required: Prepare the entries to record Pascual’s admission to or Aguilar’s withdrawal from the partnership under each of the following conditions: Pascual paid Aguilar P125,000 for 20% of Aguilar’s interest in the partnership. Pascual invested P200,000 cash in the partnership and received an interest equal to her investment. Pascual invested P300,000 cash in the partnership for a 20% interest in the business. A bonus is to be recorded for the original partners on the basis of their capital balances. Pascual invested P300,000 cash in the partnership for a 40% interest in the business. The original partners gave Pascual a…QUESTION 2 Irfan and Laila agreed to form a partnership. Irfan contributed RM200,000 in cash and Laila contributed assets with a fair market value of RM400,000. The partnership, in its initial year, reported a net income of RM120,000. REQUIRED: Calculate the distribution of the first's year income to the partners under each of the following conditions: (a) Irfan and Laila agreed to share income and losses in a 3:2 ratio. (b) Irfan and Laila agreed to share income and losses in the ratio of their original investments. (c) Irfan and Laila agreed to share income and losses by allowing 10% interest on original investments and sharing any remainder equally.