70.2K

Verified Solution

Link Copied!

Carol, Cory, and Cora own 35%, 25%, and 40%, respectively, in the EEE Partnership. Carol sells securities for their $44,000 FMV to the partnership. Review the following independent situations: (Click the icon to view the independent situations.) Requirement What are the tax implications of each independent situation? H. Begin by determining the tax implications for situations a, b, and then c. (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "O" for zero amounts.) Realized Partnership's basis Recognized gain (loss) Situation gain (loss) in the securities a. Question 70 b. C. Situation d. What are the tax consequences in Part a if the partnership subsequently sells the securities to an unrelated third party for $95,000? For $58,000? For $40,500? Complete the table for case one (selling price of $95,000), then case two (selling price of $58,000), and then case three (selling price of $40,500). (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "0" for zero amounts.) Realized Recognized gain (loss) Selling price $95,000 - X More Info $58,000 $40,500 a. Carol's basis in the securities is $90,000. The three partners are siblings. b. Carol's basis in the securities is $85,000. Carol is unrelated to the other partners. c. Carol's basis in the securities is $35,000. Carol and Cora are sisters. The partnership will hold the securities as an investment. d. What are the tax consequences in Part a if the partnership subsequently sells the securities to an unrelated third party for $95,000? For $58,000? For $40,500? Print Done Carol, Cory, and Cora own 35%, 25%, and 40%, respectively, in the EEE Partnership. Carol sells securities for their $44,000 FMV to the partnership. Review the following independent situations: (Click the icon to view the independent situations.) Requirement What are the tax implications of each independent situation? ..... Begin by determining the tax implications for situations a, b, and then c. (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "0" for zero amounts.) Realized Recognized gain (loss) Partnership's basis in the securities Situation gain (loss) a. b. C. Situation d. What are the tax consequences in Part a if the partnership subsequently sells the securities to an unrelated third party for $95,000? For $58,000? For $40,500? Complete the table for case one (selling price of $95,000), then case two (selling price of $58,000), and then case three (selling price of $40,500). (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "0" for zero amounts.) Realized Recognized gain (loss) Selling price gain (loss) $95,000 Question 10 $58,000 $40,500 Carol, Cory, and Cora own 35%, 25%, and 40%, respectively, in the EEE Partnership. Carol sells securities for their $44,000 FMV to the partnership. Review the following independent situations: (Click the icon to view the independent situations.) Requirement What are the tax implications of each independent situation? H. Begin by determining the tax implications for situations a, b, and then c. (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "O" for zero amounts.) Realized Partnership's basis Recognized gain (loss) Situation gain (loss) in the securities a. Question 70 b. C. Situation d. What are the tax consequences in Part a if the partnership subsequently sells the securities to an unrelated third party for $95,000? For $58,000? For $40,500? Complete the table for case one (selling price of $95,000), then case two (selling price of $58,000), and then case three (selling price of $40,500). (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "0" for zero amounts.) Realized Recognized gain (loss) Selling price $95,000 - X More Info $58,000 $40,500 a. Carol's basis in the securities is $90,000. The three partners are siblings. b. Carol's basis in the securities is $85,000. Carol is unrelated to the other partners. c. Carol's basis in the securities is $35,000. Carol and Cora are sisters. The partnership will hold the securities as an investment. d. What are the tax consequences in Part a if the partnership subsequently sells the securities to an unrelated third party for $95,000? For $58,000? For $40,500? Print Done Carol, Cory, and Cora own 35%, 25%, and 40%, respectively, in the EEE Partnership. Carol sells securities for their $44,000 FMV to the partnership. Review the following independent situations: (Click the icon to view the independent situations.) Requirement What are the tax implications of each independent situation? ..... Begin by determining the tax implications for situations a, b, and then c. (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "0" for zero amounts.) Realized Recognized gain (loss) Partnership's basis in the securities Situation gain (loss) a. b. C. Situation d. What are the tax consequences in Part a if the partnership subsequently sells the securities to an unrelated third party for $95,000? For $58,000? For $40,500? Complete the table for case one (selling price of $95,000), then case two (selling price of $58,000), and then case three (selling price of $40,500). (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter "0" for zero amounts.) Realized Recognized gain (loss) Selling price gain (loss) $95,000 Question 10 $58,000 $40,500

Answer & Explanation Solved by verified expert

See Answer