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On May 31, six brothers decided to form the Garth Brothers Partnership to publish and print children's stories. The contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from liabilities according to their partnership interests. (Click the icon to view the contributions.) The following other information about the contributions may be of interest: (Click the icon to view the other information.) Read the requirements. Requirement a. How much gain, loss, or income must each partner recognize as a result of the formation? Identify the gain, loss, or income that each partner must recognize as a result of the formation, one partner at a time. (If no gain, loss, or income is recognized by a partner, enter a "0" in the amount column a description column blank.) Amount of Gain, More info Individual Loss, or Income Abe Description Help me solve this Etext pages Get m Brandon contributes accounts receivable from his proprietorship, which uses the cash method of accounting. Collin uses the office equipment in a small business he owns. When he joins the partnership, he sells the remaining business assets to an outsider. He has claimed $8,000 of MACRS depreciation on the office equipment. The partnership assumes a $220,000 mortgage on the building Efrem contributes. Efrem claimed $90,000 of straight-line MACRS depreciation on the commercial property. Flint, an attorney, drew up all the partnership agreements and filed the necessary paperwork. He receives a full 5% capital and profits interest for his services. Clear all On May 31, six brothers decided to form the Garth Brothers Partnership to publish and print children's stories. The contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from liabilities according to their partnership interests. (Click the icon to view the contributions.) The following other information about the contributions may be of interest: i (Click the icon to view the other information.) Read the requirements. Requirements Requirement a. How much gain, loss, or income must each partner recognize as a result of the formation? Identify the gain, loss, or income that each partner must recognize as a result of the formation, one partner at a time. (If no description column blank.) Amount of Gain, Individual Loss, or Income Description Abe a. How much gain, loss, or income must each partner recognize as a result of the formation? b. How much gain, loss, or income must the partnership recognize as a result of the formation? c. What is each partner's basis in his partnership interest? d. What is the partnership's basis in its assets? e. What is the partnership's initial book value of each asset? f. What effects do the depreciation recapture provisions have on the property contributions? g. How would your answer to Part a change if Flint received only a profits interest? h. What are the tax consequences to the partners and the partnership when the partnership sells for $68,000 the land contributed by Dan? Prior to the sale, the partnership held the land as an investment for two years. On May 31, six brothers decided to form the Garth Brothers Partnership to publish and print children's stories. The contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from liabilities according to their partnership interests. (Click the icon to view the contributions.) The following other information about the contributions may be of interest: (Click the icon to view the other information.) Read the requirements. Requirement a. How much gain, loss, or income must each partner recognize as a result of the formation? Identify the gain, loss, or income that each partner must recognize as a result of the formation, one partner at a time. (If no description column blank.) Individual Amount of Gain, Loss, or Income Description Abe Data table Basis Individual Asset to Partner FMV Partnership Interest Abe Cash 30,000 $ 30,000 10% Brandon Accounts receivable 0 90,000 30% Collin Office equipment 28,000 30,000 10% Dan Land 120,000 75,000 25% Efrem Building 30,000 280,000 20% Flint Services ? 15,000 5%

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