Purchase Solution

Calculate the Partnership Capital Gain Allocated to Gregory

Not what you're looking for?

Ask Custom Question

At December 31, 2005, Lincoln and Ebert were equal partners in a partnership with net assets having a tax basis and fair market value of $150,000. On January 1, 2006, Gregory contributed securities with a fair market value of $75,000 (purchased in 2003 at a cost of $51,000) to become an equal partner in the new firm of Lincoln, Ebert, and Gregory. The securities were sold on July 1, 2006, for $78,000. How much of the partnership's capital gain from the sale of these securities should be allocated to Gregory?

Choices $25,000, $24,000, $9,000, or $0.

Purchase this Solution
Solution Summary

The solution calculates the Partnership Capital Gain allocated ti Gregory.

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • Partnership Basis of Assets

    $1,000 LTCG Explanation - The income of $10000 would cause an increase in stock basis to 10000 that would be reduced to zero by the distribution of $11000 to David. The remaining $1000 would be treated as the long term capital gain.

  • Computing partners recognized gain or loss

    Any gain recognized in a distribution is treated as gain from the sale or exchange of a partnership interest which is ordinarily a capital gain or loss.) (c) Ms.

  • Advanced Taxation: Stock, entity type, basis, distributions

    If White later sells the land for $110,000, $35,000 [$30,000 + 50% ($10,000)] is allocated to Andre and $5,000 (50% ($10,000)) is allocated to Cathy.

  • Tax consequences of sale and land when forming a partnership

    be allocated to Mike as his built in gain and the remaining $30,000 be allocated to both Mike and Lisa according to their partnership agreement The tax consequences of sale and land when forming a partnership is determined.

  • Partnership Distribution: Liquidating and Non-liquidating

    The partnership will recognize a $20,000 capital gain on sale of the property. True False 10 points Question 3 1. 1.

  • Taxation multiple choice questions

    The partnership had $20,000 of qualified nonrecourse debt and $20,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both types of debt.

  • This post addresses multiple partnership and tax scenarios.

    The only amount that would be considered a capital gain after this time period is if the cash distribution being made to him from the partnership exceeds his basis.

  • Income tax: Gain on Land Sale

    Of the gain on the land sale, $15,000 is allocated to Michael. Your answer is False. Total gain is $140,000 - $80,000 = $60,000. Precontribution gain: $120,000 - $80,000 = $40,000, which will allocate to Michael.

  • Partnership Calculation of Basis, Gain/Loss

    Note 4 The problem does not tell us whether this is a full liquidation of the partnership on sale of the land, nor does the problem ask us to calculate an individual disposition of a partnership asset.

View More Related Solutions