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...

70.2K

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The adjusted trial balance of Pacific Scientific Corporation onDecember 31, 2017, the end of...

Accounting
Q

The tuition at Drury in 1980 was $1,427.50. Using the inflation calculator provided by the Federal...

Finance
Q

18. What proportion of values in a normal distribution will be above 2.33 standard deviations to...

Finance
Q

7 The potential difference that must be applied to stop the fastest photoelectrons emitted by...

Physics
Q

EXAMPLE 31 A metre scale AB is held vertically with its one end A on...

Physics
Q

You may need to use the appropriate appendix table or technology to answer this question...

Statistics
Q

a companys flexible budget for 93,000 units of production showed sales of $300,000; variable costs...

Accounting
Q

Una empresa est considerando comprar una parcela de tierra que originalmente fue adquirida por el...

Accounting
Q

Journal entries and trial balance Instructions Chart of Accounts Journal Ledger ...

Accounting
Q

all are part of one question is it clear...

Accounting
Q

Bohrer Mining Inc., is trying to evaluate a project with the following cash flows: Year...

Finance
Q

Beta Volatility "Ennie" 0.45 20% "Meenie" 0.75 18% "Miney" 1.05 35% "Fashion" 1.20 25% ...

Finance