Explore BrainMass
Share

Explore BrainMass

    Sale of partnership interest

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Sue and Linda are equal partners in a partnership. Both partners had a basis of $160,000 on the date Sue decides to sell 1/2 of her share. On that date, Sue sells 1/2 of her interest to Alice for $60,000 cash.
    Partnership assets on the sale date were:

    Basis FMV Inc(dec)
    Cash $100,000 $100,000 0
    Acc Rec $ 80,000 $ 90,000 10,000
    Equip $100,000 $120,000 20,000
    Total $280,000 $310,000 30,000

    A. Based on the partners basis and FMV of its assets - is there any Sec 751 property?

    B. What is the amount and character of Sue's recognized gain or loss on the sale? What is her remaining basis in his partnership interest?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:15 am ad1c9bdddf
    https://brainmass.com/business/business-math/sale-partnership-interest-453189

    Solution Preview

    Please see the below for the complete tutorial. Thank you for the opportunity to be of assistance and of course, the opportunity to learn as well.
    Anna, 108710

    Question A

    Yes, there is a Sec751 property namely the accounts ...

    Solution Summary

    The sales of partnership interest is examined. Partnership assets on the sales data are given.

    $2.19