The RKO Partnership has the following balance sheets at December 31: Basis FMV C
ID: 2375406 • Letter: T
Question
The RKO Partnership has the following balance sheets at December 31:
Basis FMV
Cash $15,000 $15,000
Accounts Receivable 0 36,000
Inventory 22,000 40,000
Land 140,000 95,000
Totals $177,000 $186,000
Capital, R 59,000 62,000
Capital, K 59,000 62,000
Capital, O 59,000 62,000
Totals $177,000 $186,000
On that date, O sells his interest in the partnership to unrelated buyer G for $62,000.
How much gain or loss will O recognize in connection with the sale to G?
What will be the character of O's gain or loss?
Explanation / Answer
Gain recognized by o= 3000
the character of O's gain is value of his interest in firm....
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