How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask linda_us Your Own Question
linda_us
linda_us, Master's Degree
Category: Multiple Problems
Satisfied Customers: 1402
Experience:  A tutor for Business, Finance, Accounts and other related topics.
19873544
Type Your Multiple Problems Question Here...
linda_us is online now
A new question is answered every 9 seconds

Partnership XYZ was formed years ago and has two partners.

Customer Question

Partnership XYZ was formed years ago and has two partners. Partner A is a 10% partner and Partner B is a 90% partner. The partnership owns a piece of land with a tax basis of $50,000 and a value of $750,000. The land has a $200,000 nonrecourse mortgage.a. If Partner A sells his entire interest to Brian for $55,000 how much gain is recognized by Partner A? What is the character of the gain? What are the tax consequences to Brian?b. If Partner A transfers his partnership interest to his wholly owned corporation in exchange for additional common stock in the corporation, does Partner A recognize any gain?2) Partner C and Partner D are equal partners in a partnership that operates a sporting goods store. The partnership has two assets: (a) inventory with a tax basis of $500,000 and a value of $900,000 and (b) goodwill with a tax basis of zero and a value of $3,100,000. Partner C and D each have an outside basis of $250,000. Partner C sells a 25% interest in the partnership to Robin for $1,000,000. How much gain is recognized by Partner C? What is the character of the gain?
Submitted: 5 months ago.
Category: Multiple Problems
Expert:  F. Naz replied 5 months ago.

Hello

Please mention your deadline as well as let me know that this is your assignment question or practice question?

Customer: replied 5 months ago.
Practice question. Can you have it done by Thursday or Friday?
Expert:  F. Naz replied 5 months ago.

Let me go through it mean while please let me know that as this is your practice question so you wont be getting any marks on it?

Customer: replied 5 months ago.
It is a practice question. I will not be graded on it.
Expert:  F. Naz replied 5 months ago.

Okay, I am reviewing it will come back to you soon, thanks.

Expert:  F. Naz replied 5 months ago.

I cannot answer this questions so I am opting out, thanks.