Questions from General Taxation

Q: Emma and Laine form the equal EL Partnership. Emma contributes cash

Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000. a. How much gain, if...

Q: Kenisha and Shawna form the equal KS LLC with a cash contribution

Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna. a. How...

Q: Liz and John formed the equal LJ Partnership on January 1 of

Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contr...

Q: Sam and Drew are equal members of the SD LLC, formed

Sam and Drew are equal members of the SD LLC, formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2007. Sam’s uncle purchased the land in 1982 for $30,000. T...

Q: Nicholas owns business equipment with a $155,000 adjusted basis

Nicholas owns business equipment with a $155,000 adjusted basis; he paid $200,000 for the equipment, and it is currently worth $173,000. Nicholas dies suddenly, and his son Alvin inherits the property...

Q: Continue with the facts presented in Problem 12. At the end

Continue with the facts presented in Problem 12. At the end of the first year, SD distributes $100,000 cash to Sam. No distribution is made to Drew. a. How does Sam treat the payment? b. How much inco...

Q: On July 1 of the current year, the R&R

On July 1 of the current year, the R&R Partnership was formed to operate a bed-and-breakfast inn. The partnership paid $3,000 in legal fees for drafting the partnership agreement and $5,000 for accoun...

Q: Phoebe and Parker are equal members of Phoenix Investors LLC. They

Phoebe and Parker are equal members of Phoenix Investors LLC. They are real estate investors who formed the entity several years ago with equal cash contributions. Phoenix then purchased a parcel of l...

Q: Amy and Mitchell are equal partners in the accrual basis AM Partnership

Amy and Mitchell are equal partners in the accrual basis AM Partnership. At the beginning of the current tax year, Amy’s capital account has a balance of $300,000, and the partnership has recourse deb...

Q: Assume the same facts as in Problem 16. What income,

Assume the same facts as in Problem 16. What income, gains, losses, and deductions does Amy report on her income tax return? Based on the information provided, what other calculations is she required...