ACC 4302 Summer lll 2019 Chapters 10 & 11 Exam # 3 with CORRECT Answers

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True/False/Multiple Choice (10 Points) 1. The primary purpose of the partnership agreement is to document the various tax elections made by the partners regarding depreciation methods, treatment of... research and experimental costs, calculation of the § 199 deduction, and the § 754 election. __False______ 2. In a liquidating distribution, a partnership must distribute all of its property to all of its partners. ____False____ 3. On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (adjusted basis of $200,000; fair market value of $150,000) in exchange for her interest in the partnership. Jason contributes property (adjusted basis of $180,000; fair market value of $200,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation? a. Jason recognizes a $20,000 gain on his property transfer. b. Jason has a $200,000 tax basis for his partnership interest. c. Anna has a $250,000 tax basis for her partnership interest. d. Anna realizes and recognizes a $50,000 loss. e. The partnership has a $150,000 adjusted basis in the land contributed by Anna. [Show More]

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