Solved

Hannah Sells Her 25% Interest in the HIJK Partnership to Alyssa

Question 96

Essay

Hannah sells her 25% interest in the HIJK Partnership to Alyssa for $120,000 cash. At the end of the year prior to the sale, Hannah's basis in HIJK was $70,000. The partnership allocates $15,000 of income to Hannah for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair market values were as follows.
Hannah sells her 25% interest in the HIJK Partnership to Alyssa for $120,000 cash. At the end of the year prior to the sale, Hannah's basis in HIJK was $70,000. The partnership allocates $15,000 of income to Hannah for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair market values were as follows. Determine the amount and character of any gain that Hannah recognizes on the sale. Determine the amount and character of any gain that Hannah recognizes on the sale.

Correct Answer:

verifed

Verified

Hannah's basis is increased from $70,000...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: In the year a donor gives a

Q57: Nicholas is a 25% owner in the

Q88: Partner Jordan received a distribution of $80,000

Q90: The December 31, 2011, balance sheet of

Q92: For income tax purposes, proportionate and disproportionate

Q92: Normally a distribution of property from a

Q94: In a proportionate liquidating distribution in which

Q95: Anthony's basis in the WAM Partnership interest

Q97: A disproportionate distribution occurs when a cash

Q110: Nick sells his 25% interest in the