Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 21-46 (algorithmic) (lo. 14) at the beginn

Problem 21-46 (Algorithmic) (LO. 14) At the beginning of the tax year, Melodie's basis in...

90.2K

Verified Solution

Question

Accounting

image

Problem 21-46 (Algorithmic) (LO. 14) At the beginning of the tax year, Melodie's basis in the MIP LLC was $76,000, including her $49,400 share of the LLC's liabilities. At the end of the year, MIP distributed to Melodie cash of $11,400 and inventory (basis of $9,120, fair market value of $11,400). In addition, MIP repaid all of its liabilities by the end of the year. a. If this is a proportionate current distribution, what is the tax effect of the distribution to Melodie and MIP? After the distribution, what is Melodie's basis in the inventory and in her MIP interest? If this is a proportionate current distribution, the cash distribution plus relief of liabilities decrease Melodie's basis to 0 X. After the distribution of inventory, what is Melodie's basis in the inventory and in her MIP interest? Basis in inventory 9,120 Basis in MIP ox Feedback b. Would your answers to part (a) change if this had been a proportionate liquidating distribution? If this had been a proportionate liquidating distribution, then Melodie would have recognized a loss of $ ox, and her basis in the inventory would have been $ 9,120

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

Accounting
1.2K views

1. Which of the following entities appears not to be a going concern? a. Company M’s management...

Chemistry
1.2K views

Match each term to the correct definition. A. Chemical separation B. Gravity filtration C. Physical separation D. Vacuum filtration E....

Finance
1.2K views

​(MIRR)  Star Industries owns and operates landfills for several municipalities throughout the Midwestern part of the U.S....

Finance
1.2K views

If You Want Small Business Success, Know How To Measure It... Name at least 5 things...

Advance Math
1.2K views

How do you show that the function "f(x) = {[x-1;x<2], [2x-3;x>=2]}" is not differentiable at...

Biology
1.2K views

The first line of defense against pathogens is specific and it can be a physical...

Basic Math
1.2K views

Balance Sheets Net Income Financial information related to the corporation of Ebony Interiors for February...

Calculus
1.2K views

Solve the following DE 1 xy dx x 2 dy 0

Accounting
1.2K views

513000 $19000 515.000 56,000

Finance
1.2K views

(Weighted average cost of capital) Crawford Enterprises is a publicly held company located in Arnold,...

Accounting
1.2K views

E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash...

Finance
1.2K views

Hybrid cars are touted as a "green" alternative; however, the financial aspects of hybrid ownership...