Proportionate nonliquidating

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize?

As a result of the distribution, what is Sam’s basis in the accounts receivable and land, and how much gain or loss does he recognize? [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; ,000 basis in land; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; ,000 basis in land; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. ,000 basis in accounts receivable; ,000 basis in land; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. ,000 basis in accounts receivable; ,000 basis in land; ,000 gain. [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; ,000 basis in land; ,000 loss. In liquidation of the entity, Suzy receives a proportionate distribution of ,000 cash, inventory (basis of ,000, fair market value of ,000), and land (basis of ,000, fair market value of ,000).

Ashleigh’s basis in the entity immediately before the distribution was ,000. Jonathon owns a one-third interest in a liquidating partnership.

As a result of the distribution, what is Ashleigh’s basis in the accounts receivable and land, and how much gain or loss does she recognize? [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in land; ,000 gain. [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; ,000 basis in land; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; ,000 basis in land; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. ,000 basis in accounts receivable; ,000 basis in land; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain. ,000 basis in accounts receivable; ,000 basis in land; 0,000 gain. Immediately before the liquidation, Jonathon’s basis in the partnership interest is ,000.

In addition, Mark’s share of partnership liabilities was reduced by ,000 during the year. The partnership distributes a ,000 year-end cash payment to Alyce.

During the year, he received a cash distribution of ,000 and a property distribution (basis of ,000, fair market value of ,000). Alyce owns a 30% interest in a continuing partnership.

basis in accounts receivable; ,000 basis in inventory; ,000 loss. [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] basis in accounts receivable; ,000 basis in inventory; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. ,000 basis in accounts receivable; ,000 basis in inventory; [[

How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

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How much capital gain and/or ordinary income will Lillie recognize on the sale? As a result of the distribution, what is Sara’s basis in the accounts receivable and inventory, and how much gain or loss does she recognize? $0 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $0 basis in accounts receivable; $80,000 basis in inventory; $0 gain or loss. $40,000 basis in accounts receivable; $40,000 basis in inventory; $0 gain or loss. $30,000 basis in accounts receivable; $50,000 basis in inventory; $30,000 loss. $30,000 basis in accounts receivable; $60,000 basis in inventory; $10,000 gain.

During the current tax year, DDBN’s taxable income is $120,000 (earned evenly during the year). $75,000 basis; $0 ordinary income; $20,000 capital gain. $75,000 basis; $6,000 ordinary income; $14,000 capital gain.

At the end of the last tax year, Nicholas’s basis in his interest was $50,000, including his $20,000 share of LLC liabilities. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively.

Nicholas is a 25% owner in the DDBN LLC (a calendar year entity). On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000.

Which of the following statements, if any, about a multi-member LLC is false? A multi-member LLC is usually taxed like a partnership. “Members” of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts. “Members” of an LLC can participate in management of the LLC unless the member agrees not to participate. An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed. Adjusted Basis FMV Cash $ 60,000 $ 60,000 Receivables -0- 150,000 Capital assets 90,000 300,000 $150,000 $510,000 Nonrecourse debt $ 90,000 $ 90,000 Barney, capital 20,000 140,000 Lillie, capital 20,000 140,000 Marshall, capital 20,000 140,000 $150,000 $510,000 The nonrecourse debt is shared equally among the LLC members. At the sale date, what is Nicholas’s basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? $45,000 basis; $6,000 ordinary income; $44,000 capital gain. $60,000 basis; $6,000 ordinary income; $29,000 capital gain. Which of the following statements correctly reflects one of the rules regarding proportionate liquidating distributions? Relief of liabilities is treated as a distribution of cash but only to the extent that the cash distribution does not exceed the partner’s basis in the partnership interest. A partner’s basis in distributed unrealized receivables is the lesser of the partnership’s basis in the receivables or their fair market value. The basis of unrealized receivables cannot be stepped up to their fair market value unless the partner has adequate unabsorbed basis. Assets are deemed distributed in the following order: cash, unrealized receivables and inventory and finally, capital assets. The partner can recognize gain, but not loss, on a proportionate liquidating distribution. Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution.

The BLM LLC’s balance sheet on August 31 of the current year is as follows. Nicholas’s share of the LLC’s unrealized receivables is valued at $6,000 ($0 basis). Which of the following statements is true regarding the sale of a partnership interest? The selling partner’s share of partnership liabilities is disregarded in determining the proceeds from the sale of a partnership interest. For purposes of computing the selling partner’s gain or loss, the partner’s basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold. If a partner sells an interest in a partnership, income related to that interest for the year of the sale is allocated to the purchaser. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest. The partner’s share of partnership “hot assets” is disregarded in determining the character of the partner’s gain on the sale of the partnership interest.

For my very difficult paper, I did not expect to get a writer as fast as I did.

]] gain or loss. ,000 basis in accounts receivable; ,000 basis in inventory; ,000 loss. ,000 basis in accounts receivable; ,000 basis in inventory; ,000 gain.

[[

As a result of the distribution, what is Sam’s basis in the accounts receivable and land, and how much gain or loss does he recognize? $0 basis in accounts receivable; $50,000 basis in land; $0 gain or loss. $0 basis in accounts receivable; $90,000 basis in land; $0 gain or loss. $50,000 basis in accounts receivable; $40,000 basis in land; $0 gain or loss. $50,000 basis in accounts receivable; $50,000 basis in land; $50,000 gain. $0 basis in accounts receivable; $70,000 basis in land; $30,000 loss. In liquidation of the entity, Suzy receives a proportionate distribution of $30,000 cash, inventory (basis of $16,000, fair market value of $18,000), and land (basis of $25,000, fair market value of $30,000).

Ashleigh’s basis in the entity immediately before the distribution was $60,000. Jonathon owns a one-third interest in a liquidating partnership.

As a result of the distribution, what is Ashleigh’s basis in the accounts receivable and land, and how much gain or loss does she recognize? $0 basis in accounts receivable; $0 basis in land; $40,000 gain. $0 basis in accounts receivable; $30,000 basis in land; $0 gain or loss. $0 basis in accounts receivable; $40,000 basis in land; $0 gain or loss. $40,000 basis in accounts receivable; $20,000 basis in land; $0 gain. $40,000 basis in accounts receivable; $20,000 basis in land; $100,000 gain. Immediately before the liquidation, Jonathon’s basis in the partnership interest is $60,000.

In addition, Mark’s share of partnership liabilities was reduced by $10,000 during the year. The partnership distributes a $35,000 year-end cash payment to Alyce.

During the year, he received a cash distribution of $40,000 and a property distribution (basis of $30,000, fair market value of $25,000). Alyce owns a 30% interest in a continuing partnership.

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As a result of the distribution, what is Sam’s basis in the accounts receivable and land, and how much gain or loss does he recognize? $0 basis in accounts receivable; $50,000 basis in land; $0 gain or loss. $0 basis in accounts receivable; $90,000 basis in land; $0 gain or loss. $50,000 basis in accounts receivable; $40,000 basis in land; $0 gain or loss. $50,000 basis in accounts receivable; $50,000 basis in land; $50,000 gain. $0 basis in accounts receivable; $70,000 basis in land; $30,000 loss. In liquidation of the entity, Suzy receives a proportionate distribution of $30,000 cash, inventory (basis of $16,000, fair market value of $18,000), and land (basis of $25,000, fair market value of $30,000). Ashleigh’s basis in the entity immediately before the distribution was $60,000. Jonathon owns a one-third interest in a liquidating partnership. As a result of the distribution, what is Ashleigh’s basis in the accounts receivable and land, and how much gain or loss does she recognize? $0 basis in accounts receivable; $0 basis in land; $40,000 gain. $0 basis in accounts receivable; $30,000 basis in land; $0 gain or loss. $0 basis in accounts receivable; $40,000 basis in land; $0 gain or loss. $40,000 basis in accounts receivable; $20,000 basis in land; $0 gain. $40,000 basis in accounts receivable; $20,000 basis in land; $100,000 gain. Immediately before the liquidation, Jonathon’s basis in the partnership interest is $60,000. In addition, Mark’s share of partnership liabilities was reduced by $10,000 during the year. The partnership distributes a $35,000 year-end cash payment to Alyce. During the year, he received a cash distribution of $40,000 and a property distribution (basis of $30,000, fair market value of $25,000). Alyce owns a 30% interest in a continuing partnership.

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