accounting-. Denise contributes the following assets to a partnership in exchange

QUESTION

48. Denise contributes the following assets to a
partnership in exchange for a 25% partnership interest:

What is
Denise’s beginning basis in her partnership interest?

Page
14-39LO 14-1
49. On June 1 of the current year, Patti
contributes equipment with a $45,000 basis and a $35,000 FMV in exchange for a
partnership interest. She purchased the equipment three years ago.
a. What is Patti’s basis in her partnership interest?
b. What is Patti’s holding period of her partnership
interest?
c. What is the basis of the equipment in the hands of the
partnership?
d. What is the holding period of the equipment in the hands
of the partnership?
e. How will the partnership depreciate the equipment in the
year of contribution?

52. Barry and Kurt are equal partners in the BK
Partnership. Barry receives a guaranteed payment of $55,000. In addition to the
guaranteed payment, Barry withdraws $10,000 from the partnership. The
partnership has $24,000 in ordinary income during the year.
a. How much income must Barry report from BK Partnership?
b. What is the effect on Barry’s partnership basis?

47. Determine the basis of stock in the hands
of the shareholder in each of the following instances. Assume that the 80% rule
is met in all cases.
a. Contribution of property with a basis of $1,000 and an
FMV of $1,400.
b. Contribution of property with a basis of $3,000 and an
FMV of $3,800. The stockholder also received $500 cash from the corporation as
part of the stock transaction.
c. Contribution of
property with a basis of $8,200 and an FMV of $12,500. The stockholder also
received property with an FMV of $1,700 from the corporation as part of the
stock transaction.Page 15-35
d. Contribution of a building with an FMV of $200,000, a
mortgage (assumed by the corporation) of $100,000, and a basis of $125,000.
e. Contribution of a building with an FMV of $1,700,000, a
mortgage (assumed by the corporation) of $1,000,000, and a basis of $635,000.

LO 15-2
48. Using the information from Problem 47,
determine the basis of the property contributed in the hands of the corporation
in each instance. Assume that the 80% rule is met in all cases.

ANSWER:

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