Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mr. black is a partner in black & white enterp

Mr. Black is a partner in Black & White Enterprises, with two equal partners, Mr....

70.2K

Verified Solution

Question

Accounting

Mr. Black is a partner in Black & White Enterprises, with two equal partners, Mr. Black and Mr. White. The approximate fair market value of the partnership business is $300,000. Mr. Black wants to retire, and he is planning on selling his partnership interest to Ms. Jones for $385,000. Mr. Black advises you that the adjusted cost base of his partnership interest at the end of the previous year was $260,000. During the current year he is allocated $55,000 in salaries and $25,000 of his share of the net income of the partnership. Mr. Black's taxable capital gain on disposition of his partnership interest is

A.

$45,000.

B.

$22,500.

C.

$150,000.

D.

$385,000.

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