ACCT 366 Study Guide - Final Guide: Adjusted Basis, Ordinary Income, Accounts Receivable
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9-24 (skip part d: they doesn"t recognize nay gain or loss because they don"t have to recognize gain in case of, suzanne"s basis. Bob"s basis the partner property is use in exchange for an interest. Building ,000: skip, the gain realized is ,000 (,000 realized ,000 adjusted basis). 1,000 pre-contributory (,000 fmv at the time of contribution ,000 basis) The remaining ,000 is split 50/50 between suzanne and bob. Suzanne reports ,500 and bob reports ,500 in gains. The gains are ordinary since the property was inventory to suzanne and because the partnership sold it within 5 years of its contribution. 9-26 (skip part e: fred recognizes ordinary income of ,000. The other partners do not recognize any gain or income: the partnership recognizes ,000 gain on services, ed contributed a building with a ,000 mortgage. A portion of that mortgage will increase the basis for each partner (130,000 x 20% =,000 and ,000 x 15% =
