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At the beginning of the current year, Gregory and Daniel formed the GD Partnership by transferring cash and property to the partnership in exchange for a partnership interest with each having a 50% interest Specifically, Gregory transferred property having a $45.000 FMV, a $38.000 adjusted basis, and subject to a $5,000 ability, which the partnership assumed Daniel contributed $35,000 cash to the partnership The partnership also borrowed $31.000 from the bank to use in its operations. All abilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership eamed $21,000 of net ordinary income and reinvested this amount in new property Read the requirements Requirement a. What is the partnerships and each partner's gain or loss recognized on the formation of the partnership? (Complete all answer boxes If no gain or loss is recognized by a partner of the partnership, enter a ) Amount of Gain or Loss Gregory Daniel Partnership Requirement b. What is each partner's basis in his or her partnership interest at the end of the current year? Basis Partners Individual interest Gregory 5000 61000 Requiremente. For the partnership, prepare a tax and book balance sheet at the end of the current year Begin by preparing the tax balance sheet. Then prepare the book balance sheet Tax Book ww Enter any number in the edit hields and then continue to the next question Save for later Type here to search ote At the beginning of the current year, Gregory and Daniel formed the GD Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest Specifically, Gregory transferred property having a $45,000 FMV, a $38,000 adjusted basis, and subject to a $6,000 liability, which the partnership assumed Daniel contributed $35,000 cash to the partnership. The partnership also borrowed $31,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $21,000 of net ordinary income and reinvested this amount in new property Read the requirements Requirement e. For the partnership, prepare a tax and book balance sheet at the end of the current year Begin by preparing the tax balance sheet. Then prepare the book balance sheet Tax Book Cash Contributed property New Property Total assets 66000 45000 21000 66000 38000 Liabilities Capital accounts Gregory Daniel Total abilities and capital accounts At the beginning of the current year, Gregory and Daniel formed the GD Partnership by transferring cash and property to the partnership in exchange for a partnership interest with each having a 50% interest. Specifically, Gregory transferred property having a $45,000 FMV, a $38,000 adjusted basis, and subject to a $6,000 liability, which the partnership assumed. Daniel contributed $35,000 cash to the partnership. The partnership also borrowed $31,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $21,000 of net ordinary income and reinvested this amount in new property Read the requirements Daniel Total liabilities and capital accounts Requirement d. Assume instead that Gregory and Daniel formed a corporation rather than a partnership. What is the corporation's and each shareholder's gain or loss recognized on the formation of the corporation? What is each shareholder's basis in his or her stock at the end of the current year? Compute each shareholders and the corporation's gain or loss (Complete all answer boxes. If no gain or loss is recognized by a partner or the corporation, enter a "0") Gregory Daniel Corporation Amount of Gain or Loss 0 0 2000 Now compute each shareholder's basis in his stock at the end of the current year Individual Basis in corporate stock 47500 45500 Gregory Daniel Enter any number in the edit fields and then continue to the next question Save for Later Type here to search At the beginning of the current year, Gregory and Daniel formed the GD Partnership by transferring cash and property to the partnership in exchange for a partnership interest with each having a 50% interest Specifically, Gregory transferred property having a $45.000 FMV, a $38.000 adjusted basis, and subject to a $5,000 ability, which the partnership assumed Daniel contributed $35,000 cash to the partnership The partnership also borrowed $31.000 from the bank to use in its operations. All abilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership eamed $21,000 of net ordinary income and reinvested this amount in new property Read the requirements Requirement a. What is the partnerships and each partner's gain or loss recognized on the formation of the partnership? (Complete all answer boxes If no gain or loss is recognized by a partner of the partnership, enter a ) Amount of Gain or Loss Gregory Daniel Partnership Requirement b. What is each partner's basis in his or her partnership interest at the end of the current year? Basis Partners Individual interest Gregory 5000 61000 Requiremente. For the partnership, prepare a tax and book balance sheet at the end of the current year Begin by preparing the tax balance sheet. Then prepare the book balance sheet Tax Book ww Enter any number in the edit hields and then continue to the next question Save for later Type here to search ote At the beginning of the current year, Gregory and Daniel formed the GD Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest Specifically, Gregory transferred property having a $45,000 FMV, a $38,000 adjusted basis, and subject to a $6,000 liability, which the partnership assumed Daniel contributed $35,000 cash to the partnership. The partnership also borrowed $31,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $21,000 of net ordinary income and reinvested this amount in new property Read the requirements Requirement e. For the partnership, prepare a tax and book balance sheet at the end of the current year Begin by preparing the tax balance sheet. Then prepare the book balance sheet Tax Book Cash Contributed property New Property Total assets 66000 45000 21000 66000 38000 Liabilities Capital accounts Gregory Daniel Total abilities and capital accounts At the beginning of the current year, Gregory and Daniel formed the GD Partnership by transferring cash and property to the partnership in exchange for a partnership interest with each having a 50% interest. Specifically, Gregory transferred property having a $45,000 FMV, a $38,000 adjusted basis, and subject to a $6,000 liability, which the partnership assumed. Daniel contributed $35,000 cash to the partnership. The partnership also borrowed $31,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $21,000 of net ordinary income and reinvested this amount in new property Read the requirements Daniel Total liabilities and capital accounts Requirement d. Assume instead that Gregory and Daniel formed a corporation rather than a partnership. What is the corporation's and each shareholder's gain or loss recognized on the formation of the corporation? What is each shareholder's basis in his or her stock at the end of the current year? Compute each shareholders and the corporation's gain or loss (Complete all answer boxes. If no gain or loss is recognized by a partner or the corporation, enter a "0") Gregory Daniel Corporation Amount of Gain or Loss 0 0 2000 Now compute each shareholder's basis in his stock at the end of the current year Individual Basis in corporate stock 47500 45500 Gregory Daniel Enter any number in the edit fields and then continue to the next question Save for Later Type here to search

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