Questions from Federal Taxation

Q: Sean is admitted to the calendar year XYZ Partnership on December 1

Sean is admitted to the calendar year XYZ Partnership on December 1 of the current year in return for his services managing the partnership’s business during the year. The partnership reports ordinary...

Q: Marjorie works for a large firm whose business is to find suitable

Marjorie works for a large firm whose business is to find suitable real estate, establish a limited partnership to purchase the property, and then sell the limited partnership interests. In the curren...

Q: The BCD Partnership is being formed by three equal partners, Beta

The BCD Partnership is being formed by three equal partners, Beta Corporation, Chi Corporation, and Delta Corporation. The partners’ tax year-ends are June 30 for Beta, September 30 for Chi, and Octob...

Q: Duck Corporation is owned equally by Harry, Susan, and Big

Duck Corporation is owned equally by Harry, Susan, and Big Corporation. Harry and Susan are single. Eight years ago, Harry, Tom, and Big, the original investors in Duck, each paid $125,000 for their D...

Q: The BCD Partnership is formed in April of the current year.

The BCD Partnership is formed in April of the current year. The three equal partners, Boris, Carlton Corporation, and Damien have had tax years ending on December 31, August 30, and December 31, respe...

Q: Mark and Pamela are equal partners in MP Partnership. The partnership

Mark and Pamela are equal partners in MP Partnership. The partnership, Mark, and Pamela are calendar year taxpayers. The partnership incurred the following items in the current year: Sales……………………………...

Q: Jim, Liz, and Keith are equal partners in the JLK

Jim, Liz, and Keith are equal partners in the JLK Partnership, which uses the accrual method of accounting. All three materially participate in the business. JLK reports financial accounting income of...

Q: On January of the current year, Becky (20%), Chuck

On January of the current year, Becky (20%), Chuck (30%), and Dawn (50%) are partners in the BCD Partnership. During the current year, BCD reports the following results. All items occur evenly through...

Q: Refer to Example C:9-25 in the text.

Refer to Example C:9-25 in the text. Provide computations showing that the partners’ total tax liability under the special allocation is less than their total liability under an equal allocation of th...

Q: Clark sold securities for a $50,000 short-term

Clark sold securities for a $50,000 short-term capital loss during the current year, but he has no personal capital gains to recognize. The C&L General Partnership, in which Clark has a 50% capita...