tPartner X is a50% partner in the XY partnership that has the following assets a
ID: 3199564 • Letter: T
Question
tPartner X is a50% partner in the XY partnership that has the following assets and liabilities at year end. assume the book basis and the tax basis are the same.
Assets: Building basis $90,000 value 100,000 note one , basis $15,000 value $15,000 note 2 basis $88,000 value $88,000
Depreciation on the building was allocated one third to X and two thirds to Y Both notes are no recourse. if before income allocations partner X has a negative account of ($6,000) and Y has a negative capital account of $18,000 how much of the partnership income of $9,000 will be allocated to partner X.
A) 0
B) $3,000income
C)$3,000 los
D)$9,000
Explanation / Answer
Total income =$9000, shares in XY Partnership for Partner X
Then, shares for Partner Y is balance 50%
Income allocated to equal partner Y =$9000*50%
= $4500
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