R is an equal partner in the RST partnership. The partnership has made the elect
ID: 2391449 • Letter: R
Question
R is an equal partner in the RST partnership. The partnership has made the election under IRC section 745. R sells her interest to U for $114000 when her basis was $88000 and the assets of the partnership were as followed. Basis. Market Cash. $22500. $22500 Accounts receivable. $45000. $45000 Inventory. $ 90000. $94000 Land. $90000. $180000Total. $247500. $342 000
What is Us basis in the partnership inventory? A $30000 B $31500 C $63000 D $90000
R is an equal partner in the RST partnership. The partnership has made the election under IRC section 745. R sells her interest to U for $114000 when her basis was $88000 and the assets of the partnership were as followed. Basis. Market Cash. $22500. $22500 Accounts receivable. $45000. $45000 Inventory. $ 90000. $94000 Land. $90000. $180000
Total. $247500. $342 000
What is Us basis in the partnership inventory? A $30000 B $31500 C $63000 D $90000
Basis. Market Cash. $22500. $22500 Accounts receivable. $45000. $45000 Inventory. $ 90000. $94000 Land. $90000. $180000
Total. $247500. $342 000
What is Us basis in the partnership inventory? A $30000 B $31500 C $63000 D $90000
Explanation / Answer
Answer:-
$90,000 / 3 partners = $30,000 (A)
Unless an election under section 754 is made or is in effect for the year of sale, no adjustment is made to the partnership’s adjusted basis of its assets (“inside basis”),§743(a), unless there is a mandatory negative adjustment triggered by a substantial built-in loss in the partnership’s assets, see §743(d).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.