. Which one of the following is not true about partnerships? (Points : 1) There
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. Which one of the following is not true about partnerships? (Points : 1) There must be 2 or more owners.General partners assume more risk of legal liability than limited partners.
A Limited Liability Corporation ("LLC") limits certain liability risks.
A partnership is taxed like a corporation.
All of the other choices are true. Question 2.2. Which of the following statement is true about partnerships? (Points : 1) The formation of a partnership must be documented in writing.
A LLC is generally treated as a partnership for tax law purposes.
General partners have no liability for partnership obligations beyond their capital contributions.
When Sue & Billy Bob invest in land together, they are considered to have formed a partnership. Question 3.3. On July 1, 2014, Bertram acquired a 25% interest in Sycamore Company, a partnership, by contributing property with an adjusted basis of $7,000 and a fair market value ("FMV") of $12,000. The property was subject to a mortgage of $8,000, which was assumed by Sycamore Company. What is Bertram's basis in his partnership interest in Sycamore Company immediately after the partnership contribution? (Points : 1) $0
$1,000
$7,000
$12,000
None of the other provided choices Question 4.4. On July 1, 2014, Ambrose was admitted to partnership in the firm of Ambrose & Nectar. His contribution to capital consisted of 500 shares of stock in Paniculata Corporation, which he bought in 1990 for $10,000 & which had a fair market value of $50,000 on July 1, 2014. Ambrose's interest in the partnership's capital and profits is 25%. On July 1, 2014, the fair market value of the partnership's net assets (after Ambrose was admitted) was $200,000. What is Ambrose's taxable gain in 2014 on the exchange of stock for his partnership interest? (Points : 1) $0 gain or loss
$40,000 ordinary income
$40,000 long-term capital gain ("LTCG")
$40,000 Section 1231 gain
None of the other provided choices Question 5.5. During 2014, Norman contributed investment property held for over one year to the Mary Ann Partnership for a 40% interest in partnership capital & profits. His tax basis in the property contributed was $8,000, & the property had a FMV of $10,000 on the date of the contribution to the partnership. What gain or loss should Norman report as a result of the contribution of the property to the partnership in exchange for the 40% partnership interest? (Points : 1) No gain or loss
$2,000 long-term capital gain
$2,000 ordinary income
$10,000 long-term capital gain
None of the other provided choices Question 6.6. Leslie contributes a building worth $88,000, with an adjusted basis of $40,000, to a partnership in exchange for a 50% interest in the partnership's capital & profits. What is the amount of Leslie's basis in her partnership interest immediately after the contribution? (Points : 1) $20,000
$40,000
$44,000
$88,000
None of the other provided choices Question 7.7. An equal partnership is formed by Rita & Gerry. Rita contributes cash of $10,000 & a building with a FMV of $150,000, adjusted basis of $55,000, & subject to a liability of $60,000. Gerry contributes cash of $100,000. What amount of gain must Rita recognize as a result of this transaction? (Points : 1) $95,000
$35,000
$5,000
$0
None of the other provided choices Question 8.8. An equal partnership is formed by Rita & Gerry. Rita contributes cash of $10,000 & a building with a FMV of $150,000, adjusted basis of $55,000, & subject to a liability of $60,000. Gerry contributes cash of $100,000. What is Rita's basis in her partnership interest immediately after formation of the partnership? (Points : 1) $25,000
$35,000
$65,000
$70,000
None of the other provided choices Question 9.9. An equal partnership is formed by Rita & Gerry. Rita contributes cash of $10,000 & a building with a FMV of $150,000, adjusted basis of $55,000 & subject to a liability of $60,000. Gerry contributes cash of $100,000. What is the partnership's basis in the building contributed by Rita? (Points : 1) $55,000
$60,000
$90,000
$150,000
None of the other provided choices Question 10.10. Loretta contributes property to a partnership in exchange for a 25% partnership interest. The property contributed has a FMV of $45,000 & a basis of $35,000 on the date of the contribution to the partnership. In addition, Loretta receives a 10% partnership interest, valued at $18,000, in exchange for services rendered to the partnership. What is Loretta's basis in her partnership interest, immediately after these transactions? (Points : 1) $35,000
$45,000
$53,000
$63,000
None of the other provided choices . Which one of the following is not true about partnerships? (Points : 1) There must be 2 or more owners.
General partners assume more risk of legal liability than limited partners.
A Limited Liability Corporation ("LLC") limits certain liability risks.
A partnership is taxed like a corporation.
All of the other choices are true.
Explanation / Answer
1) D
A partnership is not a corporation and its not taxed as so.
2) A
Partnership agreement may be either express or implied.
3) Option C
Bertram's basis in partnership is 7000, which which he contributed.
4)C
Ambrose's taxable gain in 2014 = fairmarket value 50,000- purchase price 10000
=40,000 LTCG
As per chegg answering guidelines I answered first 4 parts of your question
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