Bill and Claudette formed Cypress, a general partnership, by contributing the following assets in exchange for 50 percent capital and profits interests in the partnership:     Basis Fair value Bill:     Cash $10,000 $10,000 Machinery $50,000 $20,000 Total $60,000 $30,000 Claudette:     Land $40,000 $80,000 Total $40,000 $80,000   What is Cypress’s total (inside) basis in the contributed assets?

Sam is allocated a ($7,000) loss from Longleaf, a general partnership in which Sam is an active and material participant. His basis in the partnership interest was $11,000 prior to considering his share of Longleaf’s loss. This $11,000 basis includes Sam’s $2,600 share of recourse debt and $5,300 share of nonrecourse debt. (These debt allocations did not change during the year.) How much loss may Sam deduct this year after considering any applicable loss limitations?

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Three years ago, Melissa contributed land to a partnership. Her basis in the land then was $5,000, and its fair value was $9,000. This year, the land is distributed to Sean, another partner in the partnership. Melissa and Sean each have a 50 percent capital and profits interest in the partnership. The land’s fair value is $12,000 when it’s distributed. (Assume none of the precontribution gain has been previously recognized.)   If Sean’s outside basis is $14,000 prior to the distribution, what is his beginning basis in the distributed property?

How many leads are placed on the chest for a 12-lead ECG?

Two years ago, Idalia contributed land to a partnership. Her basis in the land then was $7,000, and its fair value was $14,000. This year, the land is distributed to Wilfred, another partner in the partnership. Idalia and Wilfred each have a 50 percent capital and profits interest in the partnership. At the time of distribution, the land’s fair value is $12,000, Idalia outside basis is $24,000, and Wilfred’s outside basis is $30,000. What are Idalia’s and Wilfred’s outside bases after the distribution? (Assume none of the precontribution gain has been previously recognized.)

Ana contributed land purchased four years ago and previously used in her sole proprietorship to Elm, a general partnership. The land had an adjusted basis of $50,000 to Ana and a fair value of $30,000. In exchange for her contribution, Ana received a 10 percent capital and profits interest in Elm. The partnership has only one liability: a $60,000 mortgage (nonrecourse debt) securing its warehouse.   What is Ana’s holding period in her partnership interest, and what is Elm’s holding period in the contributed land?

Bill and Claudette formed Cypress, a general partnership, by contributing the following assets in exchange for 50 percent capital and profits interests in the partnership:     Basis Fair value Bill:     Cash $10,000 $10,000 Machinery $50,000 $20,000 Total $60,000 $30,000 Claudette:     Land $40,000 $80,000 Total $40,000 $80,000   What is Cypress’s total (inside) basis in the contributed assets?

Leslie received a 40 percent capital and profits interest in Sparkleberry, a general partnership, in exchange for accounting services she provided to the business. On top of her share of partnership profits or losses, Leslie receives a $15,000 guaranteed payment each year for ongoing services she provides to the partnership. Sparkleberry reported the following revenues and expenses this year:   Service revenue – $13,000 Depreciation expense (MACRS) – ($7,500) Charitable contributions – ($12,500) Gain on sale of land (a Sec. 1231 asset) – 4,000 Interest income – $500 Sec. 179 depreciation – (5,000) Guaranteed payment – ($15,000)   How much ordinary business income (loss) will Sparkleberry allocate to Leslie on her Form 1065 Schedule K-1?

Bonnie is a partner in a general partnership in which she has an outside basis of $22,000 at the end of the year (prior to any distributions). On December 31, Bonnie receives a proportionate nonliquidating distribution of $16,000 cash and property with a $13,000 fair value and a $9,000 basis to the partnership.   What is Bonnie’s beginning basis in the distributed property?