EXAM 6 Summer Semester, 2018 29. What is the rationale for the specific rules pa
ID: 2401841 • Letter: E
Question
EXAM 6 Summer Semester, 2018 29. What is the rationale for the specific rules partnerships must follow in determining a partnership's taxable year-end? A. To increase the amount of aggregate tax deferral partners receive . Tominimize the amount of aggregate tax deferral partners receive D. To spread the workload of CPAs more evenly over the year E. To minimize the amount of aggregate tax deferral partners receive and to align the year-end of the To align the year-end of the partnership with the year-end of a majority of the partners partnership with the year-end of a majority of the partners 30. A partnership interest in a partnership consists of which part(s)? a. Capital. b. Profit. c. Loss. d. All of the above. e. None of the above 31. Partnership formations are normally tax free unless which of the following are included: a. Services for profit interest. b. Assumption of liabilities in excess of basis. c. Services for capital interest. d. Both b. and c. above e. None of the above 32. Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $10,000 of cash and land with a FMV of $55,000. Her basis in the land is S20,000. Andrew contributes equipment with a FMV of $12,000 and a building with a FMV of $33,000. His basis in the equipment is $8,000, and his basis in the building is $20,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew? A. $0 B. $4,000 C. $35,000 D. $48,000 E. $52,000 33. If a partner is leaving the partnership and has a basis in his capital account of $100 and he is given cash of $40 and property worth $200 and he takes the cash first, what is his basis in the property? b. $60 e. None of the above C. $160 a. $-0-, with a S60 capital gain. d. S-0-, with a S60 ordinary gain. 34. If a partner is leaving the partnership and has a basis in his capital account of $100 and he is gi of $40 and property worth $200 and he takes the property first, what is ven cash his basis in the property? c. S160 a. $100, with a $40 capital gain. d. S200, with a $40 ordinary gain. b. $200. e. None of the above 35. Which of the following would not be classified as a separately-stated item? A. Short-term capital gains B. Charitable contributions E. None of the above. C. MACRS depreciation expense D. Guaranteed payments 36. Guaranteed payments can be made in a partnership. It can be given for C. rent B. return on investment E. None of the above. A. services D. Both A and B uaranteed payments that are for services are considered what type of i C. Active A. Ordinary D. Both A and B B. Earned E. All of the above.Explanation / Answer
29. Option C
30. Option D
31. Option C
32. Option A
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