O $25,000 O $35,000 Mark for follow up Question 21 of 75. Jaylan and Casper are
ID: 2336327 • Letter: O
Question
O $25,000 O $35,000 Mark for follow up Question 21 of 75. Jaylan and Casper are equal partners in J&C Raccoon Hats. Jaylan contributed $12,000 and Casper contributed inventory with a FMV of $12,000 and an adjusted basis of $10,000. Which of the following is true? O Jaylan's basis in the partnership is $12,000 and Casper's is $10,000. O Jaylan and Casper each have a basis in the partnership of $12,000. O Jaylan will have a larger share of the profits than Casper O The first and third answers are both correct Mark for follow up Question 22 of 75. Neckole owns a 50% interest in partnership J&K. She contributes a computer system with a FMV of $15,000 and an adjusted basis of $10,000 to the partnership. Which of the following is true? O The partnership's basis in the computer system will be $10,000 and Neckole's outside basis will increase by $10,000 O The partnership's basis in the computer system wil be S 10,000 and Neckole's outside basis will increase by $15,000. O The partnership's basis in the computer system will be $15,000 and Neckole's outside basis will increase by $10,000. O The partnership's basis in the computer system will be $15,000 and Neckole's outside basis willincrease by $15,000 LJ Mark for follow up Question 23 of 75. For the tax year, OPQ Partnership reported $42,000 net ordinary income, $5,000 interest income, $600 charitable contribution, general partner who owns a and $18,000 5179 deduction. Pat is a What is the amount of Pat's sel 20% interest in OPQ. She received a s 12.000 guaranteed payment and $0 distributions during the year. t income from OPQ?Explanation / Answer
21) A. Jaylens basis in partnership is $12,000 and Casper's is $10,000
As per IRS, the basis of a partnership interest is the money plus the adjusted basis of any property the partner contributed.
22) C. The partnership's basis in the computer system will be $15,000 and Neckole's outside basis will increse by $10,000.
As per IRS, The outside basis is the tax basis of each individual partner's interest in the partnership. When a partner contributes property to the partnership, the partnership's basis in the contributed property is equal to its fair market value (FMV). However, the outside basis of the partner increases only by the amount of the basis that the partner had in the property.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.