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  3. 1. joy is a 30% partner in the jom partnership whe

1. Joy is a 30% partner in the JOM Partnership when she sells her entire...

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Accounting

1. Joy is a 30% partner in the JOM Partnership when she sells her entire interest to Hope for $73,000 cash. At the time of the sale, Joys basis in JOM is $44,000 (which includes her $7,000 share of JOM liabilities). JOM does not have any hot assets. What is Joys gain or loss on the sale of her interest?

2.Allison, Keesha, and Steven each own equal interests in KAS partnership, a calendar year-end, cash-method entity. On January 1 of the current year, Stevens basis in his partnership interest is $27,000. During January and February, the partnership generates $30,000 of ordinary income and $9,000 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $46,000. The partnership has the following assets and no liabilities at the sale date:

Tax Basis FMV

Cash $ 30,000 $ 30,000

Land held for investment 30,000 60,000

Totals $ 60,000 $ 90,000

Assuming KASs operating agreement provides for an interim closing of the books when partners interests change during the year, what is the amount of Stevens recognized gain or loss on the sale?

3. Continuing the prior problem what is the partnerships basis in the Land held for investment following the sale of the partnership interest from Steven to Juan?

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