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linda_us
linda_us, Master's Degree
Category: Multiple Problems
Satisfied Customers: 1402
Experience:  A tutor for Business, Finance, Accounts and other related topics.
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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: 11 months ago.
Category: Multiple Problems
Expert:  F. Naz replied 11 months ago.

Hello

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

Customer: replied 11 months ago.
Practice question. Can you have it done by Thursday or Friday?
Expert:  F. Naz replied 11 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 11 months ago.
It is a practice question. I will not be graded on it.
Expert:  F. Naz replied 11 months ago.

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

Expert:  F. Naz replied 11 months ago.

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