The writer is very fast, professional and responded to the review request fast also. Thank you.
Jane acquired a 40% interest in the Waterstone General Partnership bycontributing investment land with an adjusted basis of $24,000 and a fair market value of$105,000;Jane had originally acquired the land on 2/2/1991. The land was subject to a $35,000mortgage which was assumed by the Waterstone General Partnership as part of the deal.Mike acquired a 60% partnership interest in the partnership in exchange for a capitalcontribution of $105,000 in cash. Both capital contributions occurred on 1 January 2010.The partnership used the land contributed by Jane to operate a parking lot.During 2010, the partnership had net rental income from renting out the land of$160,000. In addition, on 25 December 2010, the land was sold for a total sales price of$125,000 ($90,000 of cash PLUS the buyer assumed the $35,000 mortgage).The partnership distributed $20,000 of cash during 2010 ($8,000 to Jane & $12,000 toMike).In addition, the partnership borrowed $40,000 during 2010, and this recourse loan wasstill outstanding as of 12/31/2010.REQUIRED:A. How much and what type of income must Jane report from 2010partnership activity?B. What is Jane’s basis in the partnership @12/31/2010?
Part AJane Must report the following income form partnership activityRental Income to the extent of 40% – $64,000 Capital Gains of the land to the extent 40% – $26,400 (125,000 – 35,000 –…
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more