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Sale of partnership interest

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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?

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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
See Also This Related BrainMass Solution

Accounting: Ratio, depreciation, Cash flow statement etc.

PLEASE SHOW A DESCRIPTION ON HOW TO DO ALL OF THESE:

Prepare a schedule of cash payments for
partnership liquidation

Prepare journal entries for bond issuance and first interest payment with amortization of discount/premium

Prepare operating section of Statement of Cash Flows using indirect method

Prepare journal entries for transactions under equity method of accounting

Prepare Income Statement including intra-period tax allocation for
irregular items

PLEASE HELP ME UNDERSTAND THESE:
Ch 10 Depreciation terminology
Ch 10 Calculate Depreciation
Ch 11 Calculate interest expense on note
Ch 11 Payroll taxes versus employee withholdings
Ch 12 Advantages/disadvantages of partnerships
Ch 12 Steps in partnership liquidation
Ch 13 Issue stock to acquire non-cash asset
Ch 13 Stock terminology
Ch 14 Journal entry for stock dividend
Ch 14 Calculate Earnings Per Share (EPS)
Ch 15 Bond terminology
Ch 15 Bond terminology
Ch 15 Bond prices versus interest rates
Ch 16 Valuation of short term investments
Ch 16 Methods of accounting for stock investments
Ch 17 Meaning of statement of Cash Flows activities
Ch 17 Classify items into activities
Ch 17 Calculate cash received from customers
Ch 18 Ratio
Ch 18 Extraordinary item

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