Sam, Sue, and Shelley formed a partnership. Sam received a 50 percent interest in the partnership in exchange for land with an adjusted basis to him of $30,000 and a fair market value of $50,000. Sue received a 25 percent interest in the partnership in exchange for $25,000 of cash. Shelley received a 25 percent interest in the partnership in exchange for $25,000 of cash. Three years after the date of contribution, the land contributed by Sam was sold by the partnership to an unrelated third party for $90,000.
Required:
1. How much gain was required to be allocated to Sam as a result of the sale by the partnership?
a. $20,000.
b. $30,000.
c. $40,000.
d. $60,000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sam, Sue, and Shelley formed a partnership. Sam received a 50 percent interest in the partnership in exchange for land with an adjusted ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The Human Resources department of Superior Catering conducted a training workshop on setting and achieving organization goals.
Answers (1)
The information-aggregation problem faced by the top layers of government can make it hard for the high-level officials to:
Answers (1)
Henry Crouch's law office has traditionally ordered ink refills 50 units at a time. The firm estimates that carrying cost is 40 % of the $9 unit cost and that annual demand is about 235 units per year.
Answers (1)
Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change. a) trueb) false
Answers (1)
From her annual salary of $72,000, Kierstan has $5,700 automatically deducted for insurance on an annual basis. Additionally, $9,000 is deducted each year in taxes.
Answers (1)
New Questions in Business
Atold Corporation reports goodwill of $40 million on acquisition of Benholm Company. One month later, Atold learns that Benholm's portfolio of AFS debt investments is worth $3 million more than estimated at the date of acquisition.
Answers (1)
You have some news to share with your manager. You've decided to take a new job, and you're giving your two weeks' notice. It's bad news for him but good news for you. What is the best way to communicate this information to your manager?
Answers (1)
The usual sequence of steps in the recording process is to a. analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts. b.
Answers (2)
Estate taxes are taxes on a person's estate when that person dies. True False
Answers (1)
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit.
Answers (1)