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McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
Edition 3ISBN: 9780077924522McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
Edition 3ISBN: 9780077924522 Exercise 41
At the end of last year, Lisa, a 35% partner in the five-person LAMEC partnership, has an outside basis of $60,000 including her $30,000 share of LAMEC debt. On January 1 of the current year, Lisa sells her partnership interest to MaryLynn for a cash payment of $45,000 and the assumption of her share of LAMEC's debt.
a. What is the amount and character of Lisa's recognized gain or loss on the sale
b. If LAMEC has $100,000 of unrealized receivables as of the sale date, what is the amount and character of Lisa's recognized gain or loss
c. What is MaryLynn's basis in the partnership interest
a. What is the amount and character of Lisa's recognized gain or loss on the sale
b. If LAMEC has $100,000 of unrealized receivables as of the sale date, what is the amount and character of Lisa's recognized gain or loss
c. What is MaryLynn's basis in the partnership interest
Explanation
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I nside Outside Basis Partnership
Outsi...
McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
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