Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. diana, a partner in the cash basis hda partnership

Diana, a partner in the cash basis HDA Partnership, has a one-third interest in partnership...

80.2K

Verified Solution

Question

Accounting

Diana, a partner in the cash basis HDA Partnership, has a one-third interest in partnership profits and losses. The partnership's balance sheet at the end of the current year is as follows. Cash $120,000 (basis) $120,000 (FMV) Receivables $0 (basis) $240,000 (FMV) Land $150,000 (basis) $390,000 (FMV) Hannah, capital $90,000 (basis) $250,000 (FMV) Diana, capital $90,000 (basis) $250,000 (FMV) Alexis, capital $90,000 (basis) $250,000 (FMV) Diana sells her interest in the HDA Partnership to Kenneth at the end of the current year for cash of $250,000. (Note: Relates to a distribution that causes an out-of-balance situation.)

Use Microsoft Excel worksheet that illustrates the out-of-balance situation and how a 754 adjustment can restore balance. Use the intuitive approach to allocate any step-up to partnership assets. Hint:You'll need to significantly modify the format for this situation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

a 11 3a 5 a 21 3a 5

Finance
1.2K views

Consider the following information for Watson Power Co.:      Debt: 4,500 8.5 percent coupon bonds outstanding, $1,000 par...

Biology
1.2K views

what is the role of adenyl cyclase in cellular signal transduction?

Psychology
1.2K views

Why is face to face communication is important rather than communicating through social sites, text messages, and emails.

Accounting
1.2K views

You have just been hired as a new management trainee by Earrings Unlimited, a distributor...

Accounting
1.2K views

Sylvia Company has a long term plan asset with the following information at the end...

Accounting
1.2K views

Melbourne Ltd acquired 100% of Sydney Ltd on 11 December 2016. On 1 January 2017,...

Accounting
1.2K views

Autumn hat. Som corted fotowe pepel vary two for for a free Click the last...

Accounting
1.2K views

Which of the following statements is CORRECT? I) Anti-takeover provisions include shareholder rights provisions, targeted...

Accounting
1.2K views

An appropriate transfer price between two divisions of The Fathom Company can be determined from...

Accounting
1.2K views

How do I complete journaling this? This problem covers the journal entries related to Job...

Accounting
1.2K views

PLEASE HELP Rundle, Inc. sells fireworks. The companys marketing director developed the following cost...