Solved: Partnership and Corporate Tax Reporting
Assessment 7 Problems In a Word document, provide complete answers with explanations to the problems below. Problem 1 Darrel, Sissy, and Carol form a partnership. Darrel and Sissy give equipment and a building, respectively. Carol agrees to perform all of the accounting and office work in exchange for a 10% interest. FMV Basis Partnership % Darrel’s equipment $200,000 $100,000 60% Sissy’s building $100,000 $50,000 30% Carol’s services $0 $0 10%- Do any of the partners recognize any gain? If so, how much and why?
- What is the basis for each partner in his or her partnership interest?
- What is the basis for the partnership of each asset?
- 1231 gain 8,600
- 179 expense 36,000
- What is Wayne’s self-employment income?
- Calculate Wayne’s basis at the end of the year.
- How much gain or loss must Karen recognize on the distribution?
- What is Karen’s ending partnership basis?
- What is Karen’s basis in the equipment?
- Contribution of property with a basis of $2,000 and an FMV of $2,800.
- Contribution of property with a basis of $6,000 and an FMV of $7,600. The stockholder also received $1,000 cash from the corporation as part of the stock transaction.
- Contribution of property with a basis of $16,400 and an FMV of $25,000. The stockholder also received property with an FMV of $3,400 from the corporation as part of the stock transaction.
- Contribution of a building with an FMV of $400,000, a mortgage (assumed by the corporation) of $200,000, and a basis of $250,000.
- Contribution of a building with an FMV of $3,400,000, a mortgage (assumed by the corporation) of $2,000,000, and a basis of $1,270,000.
- Book income of $100,000 including capital gains of $4,000, a charitable contribution of $2,000, and travel and entertainment expenses of $6,000.
- Book income of $184,000 including capital losses of $6,000, a charitable contribution of $24,000, and travel and entertainment expenses of $6,000.
- Book income of $152,000 including municipal bond interest of $4,000, a charitable contribution of $10,000, and dividends of $6,000 from a 10% owned domestic corporation. The corporation also has a $16,000 charitable contribution carryover.
- Book income of $258,000 including municipal bond interest of $4,000, a charitable contribution of $10,000, and dividends of $14,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $12,000 and a capital gain of $5,000 in the current year.
- Corporate E&P of $20,000, shareholder stock basis of $24,000, distribution of $12,000.
- Corporate E&P of $15,000, shareholder stock basis of $14,000, distribution of $13,000.
- Corporate E&P of $32,000, shareholder stock basis of $10,000, distribution of $34,000.
- Corporate E&P of $28,000, shareholder stock basis of $22,000, distribution of $52,000.