All Related Questions of General Partnership

Q: Aaron, Deanne, and Keon formed the Blue Bell General Partnership

Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000 and Keon transferred an acre of undeveloped land to th...

Q: The partnership agreement of the G&P general partnership states that

The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000, and that Gary and Prudence will share the remaining profits or losses in a 45/55...

Q: Which of the following qualify as like-kind exchanges under §

Which of the following qualify as like-kind exchanges under § 1031? a. Improved for unimproved real estate. b. Vending machine (used in business) for inventory. c. Rental house for personal residence....

Q: What is the difference between a general partnership and a limited liability

What is the difference between a general partnership and a limited liability company? When might each type of entity be used? Why?

Q: Which of the following exchanges qualify as like-kind exchanges under

Which of the following exchanges qualify as like-kind exchanges under Sec. 1031? a. Acme Corporation stock held for investment purposes for Mesa Corporation stock also held for investment purposes b...

Q: What is the basis of the new property in each of the

What is the basis of the new property in each of the following exchanges? a. Apartment building held for investment (adjusted basis of $145,000) for office building to be held for investment (fair ma...

Q: Abe and Brenda formed the AB Partnership ten years ago as a

Abe and Brenda formed the AB Partnership ten years ago as a general partnership and have been very successful with the business. However, in the current year, economic conditions caused them to lose s...

Q: Rick has a $50,000 basis in the RKS General

Rick has a $50,000 basis in the RKS General Partnership on January 1 of the current year, and he owns no other investments. He has a 20% capital interest, a 30% profits interest, and a 40% loss intere...

Q: Bob and Carol want to open a bed and breakfast inn as

Bob and Carol want to open a bed and breakfast inn as soon as they buy and renovate a turn-of the-century home. What would be the major disadvantage of using a general partnership rather than a corpor...

Q: Sam wants to help his brother, Lou, start a new

Sam wants to help his brother, Lou, start a new business. Lou is a capable auto mechanic but has little business sense, so he needs Sam to help him make business decisions. Should this partnership be...

Q: Jane contributes valuable property to a partnership in exchange for a general

Jane contributes valuable property to a partnership in exchange for a general partnership interest. The partnership also assumes the recourse mortgage Jane incurred when she purchased the property two...

Q: Jeff, a 10% limited partner in the recently formed JRS

Jeff, a 10% limited partner in the recently formed JRS Partnership, expects to have losses from the partnership for several more years. He is considering purchasing an interest in a profitable general...

Q: Suzanne and Bob form the SB General Partnership as equal partners.

Suzanne and Bob form the SB General Partnership as equal partners. They make the following contributions: The SB Partnership assumes the $80,000 recourse mortgage on the building that Bob contributes...

Q: Yong received a 40% general partnership interest in the XYZ Partnership

Yong received a 40% general partnership interest in the XYZ Partnership in each of the independent situations below. In each situation, assume the general partners share the economic risk of loss rela...

Q: The KC Partnership is a general partnership that manufactures widgets. The

The KC Partnership is a general partnership that manufactures widgets. The partnership uses a calendar year as its tax year and has two equal partners, Kerry and City Corporation, a widely held corpor...

Q: Joel receives a $40,000 cash distribution from the JM

Joel receives a $40,000 cash distribution from the JM Partnership, which reduces his partnership interest from one­third to one­fourth. The JM Partnership is a general partnership that uses the cash m...

Q: Anne decides to leave the ABC Partnership after owning the interest for

Anne decides to leave the ABC Partnership after owning the interest for many years. She owns a 52% capital, profits, and loss interest in the general partnership (which is not a service partnership)....

Q: Josh holds a general partnership interest in the JLK Partnership having a

Josh holds a general partnership interest in the JLK Partnership having a $40,000 basis and a $60,000 FMV. The JLK Partnership is a limited partnership that engages in real estate activities. Diana ha...

Q: Della retires from the BCD General Partnership when her basis in her

Della retires from the BCD General Partnership when her basis in her partnership interest is $70,000 including her $10,000 share of liabilities. The partnership is in the business of providing house c...

Q: Pedro owns a 60% interest in the PD General Partnership having

Pedro owns a 60% interest in the PD General Partnership having a $40,000 basis and $200,000 FMV. His share of partnership liabilities is $100,000. Because he is nearing retirement age, he has decided...

Q: (Supplement A) Briefly differentiate between a sole proprietorship, a

(Supplement A) Briefly differentiate between a sole proprietorship, a partnership, and a corporation. Supplement A: Types of Business Entities: This textbook emphasizes accounting for profit-making b...

Q: What is the basis of the new property in each of the

What is the basis of the new property in each of the following exchanges? a. Apartment building held for investment (adjusted basis of $145,000) for office building to be held for investment (fair ma...

Q: What are the differences between a general partnership and a limited partnership

What are the differences between a general partnership and a limited partnership?

Q: What is the distinction between a general partnership and a limited partnership

What is the distinction between a general partnership and a limited partnership?

Q: How does a general partnership differ from a limited partnership?

How does a general partnership differ from a limited partnership?

Q: Daniel Blake and Craig Martineau are founding partners of their company,

Daniel Blake and Craig Martineau are founding partners of their company, EcoScraps, LLC. Assume that Daniel and Craig decide to expand their business with the help of general partners. Required 1. Wh...

Q: Carolyn has a 50 percent interest in a general partnership that has

Carolyn has a 50 percent interest in a general partnership that has a $14,000 loss for the year. She materially participates in the partnership. Her basis in the partnership is $10,000. She also has s...

Q: A subsidiary of Corporation A, an electrical utility located in Springfield

A subsidiary of Corporation A, an electrical utility located in Springfield, and a subsidiary of Corporation B, a diversified manufacturer also located in Springfield, formed a joint venture under the...

Q: What is the difference between a general partnership and a limited partnership

What is the difference between a general partnership and a limited partnership?

Q: What is the difference between a general partnership and a limited partnership

What is the difference between a general partnership and a limited partnership?

Q: Assume that Parchment in (1) is a general partnership rather

Assume that Parchment in (1) is a general partnership rather than a corporation. Respond to parts (a), (b), and (c). Would your answer change if Parchment were an LLC that ''checked the box" to be tax...

Q: Identify whether the taxpayer's economic position has changed in the following exchanges

Identify whether the taxpayer's economic position has changed in the following exchanges such that they are subject to current taxation. That is, identify whether the following qualify as like-kind ex...

Q: 1. In which of the following ways does a proprietorship differ

1. In which of the following ways does a proprietorship differ from a partnership? a. Number of owners b. Owner liability c. Liquidity of ownership d. Taxation 2. In what ways does a limited part...

Q: FS Partners is a general partnership whose partners are Jerry Stahlman,

FS Partners is a general partnership whose partners are Jerry Stahlman, a professional engineer, and Fitz & Smith, Inc., a corporation in the business of excavating and paving. Timothy Smith signed th...

Q: How does a general partnership differ from a limited partnership?

How does a general partnership differ from a limited partnership?

Q: How does a general partnership differ from a limited partnership?

How does a general partnership differ from a limited partnership?

Q: Chris Gray, Bryson Alf, and Nick Pirelli are founding partners

Chris Gray, Bryson Alf, and Nick Pirelli are founding partners of their company, Schally. Assume that Chris, Bryson, and Nick decide to expand their business with the help of general partners. Requi...

Q: Determine whether each characteristic describes a general partnership (GP), limited

Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither. a. Must pay a business (corporate) income tax. b. When the business canno...

Q: For each separate case, indicate which type of organization should be

For each separate case, indicate which type of organization should be formed. a. Sharif, Henry, and Kori want to start a tech firm. They are deciding between an S corporation and a C corporation. The...