ACC 317 Week 4 Homework Chapter 21
This file of ACC 317 Week 4 Homework Chapter 21 includes:
Chapter 21: Partnerships Homework Submission
Sams outside basis in the LLC is the amount he contributed for land, that being $200,000.
According to 721, when a partnership is formed, neither the partner or the partnership recognizes any realized gain or loss that results when a partner contributes property to a partnership. Any realized gain or loss is deferred.
b. Sams basis in his LLC interest will be 50% = $200,000
c. The same goes for Ddrew, as for Sam. Any realized gain or loss due to his contribution to the LLC is deferred according to 721.
d. Since Drew and Sam both have a 50% interest in the LLC, his basis is the same as Sams.
Amys basis in the partnersh
ip at the beginning of the year is $400,000 ($300,000 beginning
balance plus her 50% share of the partnerships $200,000 recourse debt).
b. Amys basis in the partnership at the end of the year is as follows:
Beginning Balance of $300,000 Share of net increase in liabilities $30,000 Share of Ordinary LLC Income $200,000 Share of interest income $2,000 Share of short-term capital gain $6,000 Share of long-term capital loss ($3,000) Share of Charitable contribution ($2,000) Ending Basis of $533,000 48 a.