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what A?s basis would have been if the AB partnership had instead been organized as an S Corporation.

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A and B each contribute $50,000 in cash to the AB partnership. The partnership has the following transactions this year;- Sales: $250,000 - COGS: $100,000 - Interest income: $5,000;- Rent Expense: $50,000 - Wages paid: $40,000 - Advertising Expense: $15,000;- Depreciation Exp: $15,000 - Charitable Contrib: $5,000 - Maintenance Exp: $10,000;In addition, the partnership took a bank loan of $100,000, and it also made a cash distribution of $35,000 to each partner. Assuming that A and B are equal partners, please determine (1) A?s basis in her partnership interest at the end of the year, (2) A?s partner capital at the end of the year. In addition, please determine what A?s basis would have been if the AB partnership had instead been organized as an S Corporation.

 

Paper#23873 | Written in 18-Jul-2015

Price : $32
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