Question :
61. For the following separate, independent situations indicate with a “Yes” : 1313616
61. For the following separate, independent situations indicate with a “Yes” if a partnership return needs to be filed. Mark with a “No” if a partnership return is not required.a. Tony and Gina form a joint venture to import goods from South Korea.b. Nancy decided to start her own private investigative business.c. Uncle Pennybag’s estate assets are pooled together until they can be distributedto the beneficiaries.d. Howie, Dewey, and Cheatem form an LLC.e. Flora, Fauna, and Merryweather start a child care business. No official documentsare drawn up.
62. Jack and Jill decided to pool their money and start a water delivery business. Since they trust each other so much, they did not draw up any legal documents for the business. During the first year of business, they earned $50,000 which was net of $10,000 paid to Jill as a guaranteed payment. During the second year of business, they decided to limit their liability exposure by forming an LLP.a. Was a partnership formed during the first year?b. If a partnership was formed, how much income will the partnership pay tax on?c. For the second year, do they need to file a partnership tax return?
63. Cooke and Thatcher form the C&T Partnership. Cooke contributes equipment with a fair market value of $70,000 and a basis of $35,000, in exchange for an 70 percent interest in the partnership capital and profits. Thatcher performs services worth $30,000 for the partnership in exchange for a 30 percent interest in capital and profits.
a.What is the amount of Cooke’s recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership interest?
b.What is Cooke’s basis in his partnership interest immediately after the contribution?
c.What is the amount of Thatcher’s recognized income or loss (if any) on the contribution to the partnership?
d.What is Thatcher’s basis in her partnership interest immediately after the contribution?
e.What is C&T Partnership’s basis in the equipment received from Cooke?
64. Oscar and Frank form an equal partnership, the O and F Partnership. Oscar contributes land with an adjusted basis of $45,000, subject to a mortgage of $100,000, in exchange for a partnership interest worth $250,000. Frank contributes cash of $100,000 and performs services for the partnership in exchange for a partnership interest worth $250,000.
a.What is the amount of Oscar’s recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership interest?
b.What is Oscar’s basis in his partnership interest immediately after the contribution?
c.What is the amount of Frank’s recognized income or loss (if any) as a result of the receipt of the partnership interest in exchange for the cash and services?
d.What is the partnership’s basis in the land received from Oscar?
65. Jennifer has a 25 percent interest in the Aspen Aircraft partnership. Her basis in her partnership interest is $10,000 at the beginning of 2014. The partnership reported the following activity for 2014:
Ordinary income$40,000
Section 1231 gain$10,000
Charitable contribution$12,000
Total distributions to partners$28,000
What is Jennifer’s basis in her partnership interest at the end of 2014?
