Sweeney originally contributed $310,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $186,000 and he withdrew $124,000 cash. The LLC's liabilities are $155,000, of which Sweeney's share is $38,750. The LLC has $77,500 of hot assets, of which Sweeney's share is $19,375. Sweeney sells his LLC interest to Jana for $409,200 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? How much is Jana's adjusted basis for her LLC interest?
Q: REQUIRED Use the information provided below to prepare the following for March and April 2024: 4.1…
A: Debtors Collection Scheduled :— It is a scheduled that provides net Cash collection from the…
Q: Alice is single and self-employed in 2022. Her net business profit on her Schedule C for the year is…
A: Employment tax liability refers to the legal responsibility of an employer to pay taxes on the wages…
Q: W-r-i-t-e- -y-o-u-r- -u-n-d-e-r-s-t-a-n-d-i-n-g- -a-n-d- -l-e-a-r-n-i-n-g-s- -o-f- -t-h-e-…
A: Income Taxes of Partnerships, Co-Ownerships, and Joint VenturesIn the Philippines, partnerships,…
Q: Presented below are incomplete 2022 manufacturing cost data for Ivanhoe Corporation. Determine the…
A: Costs of manufacturing include material costs as well as the costs of converting the raw materials…
Q: ABC Corporation owns 20% of DEF’s stocks and receives $3,500 in dividend income. It is in the 34%…
A: The dividend is the profits distributed by the company to its shareholders. Shares can be held by…
Q: REQUIRED Use the information provided below to calculate the following variances. Each answer must…
A: Given InformationStandard Quantity Standard Quantity for 1 unit of Product M Standard Labour Hours…
Q: Can you help prepare the 2 attached journal entries for this example The management of Banciu…
A: Intangible assetsIntangible assets are the assets that are represented as noncurrent assets which…
Q: Your answer is correct. Vatson invests $27,250. Journalize the admission of Watson. (Credit account…
A: In this question, we will post the journal entry for the admission of Watson, Journal entry helps in…
Q: The It's Meat Honest burger company $2.5 million in equipment and has an accumulated depreciation…
A: Equipment -Equipment is a Fixed Assets of the company. It is recorded as a non current assets in the…
Q: On December 31 (fiscal year-end) financial statements of Collette, Inc. reported the following…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: Select a company with which you are familiar and describe the internal controls that you are aware…
A: Internal control is a procedure that is aimed to offer reasonable confidence that information is…
Q: Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Bonita Industries's contribution margin is $27.50 per unit for Product A and $30 for Product B.…
A: Contribution margin: The difference between the sales and the variable costs is called contribution…
Q: Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: business operated at 100% of capacity during its first month and incurred the following costs:…
A: Variable costing:Assigning only variable manufacturing costs to the product is referred to as…
Q: Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below: Sep sales, units…
A: Budgeting -Budgeting is the process of estimating future operations based on past performance. % are…
Q: Amalgamated General Corporation is a consulting firm that also offers financial services through its…
A: Journal entryJournal entries are the accounting entries that are passed into the books of the entity…
Q: July 1 1 3 5 12 18 20 21 25 31 31 Clark opened Pharoah's Cleaning Service on July 1, 2022. During…
A: According to the question given, we need to prepare the closing entries.Closing entries:Closing…
Q: Edward ltd comprises of 3 production departments and 2 service departments. The following…
A: According to the question given, we need to prepare the statement of primary and secondary overhead…
Q: When there are material differences between the results of using the straight-line method and using…
A: 1. The straight-line method of amortization is a simple and commonly used method for allocating the…
Q: A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires…
A: Budgeting -Budgeting is the process of estimating future operations based on past performance. % are…
Q: Lorna deposited $1,400, at the beginning of every six months for 13 years, in an account at her…
A: Annuity is a contract under which one party agrees to pay to the other party, a fixed sum, at a…
Q: At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: Complete this question by entering your answers in the tabs below. Contribution to Departmental…
A: Direct expenses are any expenses incurred to manufacture of particular product. the following…
Q: Highland Bancshares has 33,000 shares of $1 par value common stock outstanding Suppose Highland…
A: The dividend is declared to the shareholders from the retained earnings of the business. The smaller…
Q: don´t undertand why Office Depot has the greatest possibility if the Debt ratio is higher which…
A: A liability is a legal obligation to pay other entities as a result of past transactions or other…
Q: The following information is taken from the payroll records of a company. Basic pay for basic hours…
A: Direct labour is the labour that is directly involved in the production they are specifically hiring…
Q: Listed below are a few transactions and events of Maxum Company. 1. Employees earn vacation pay at a…
A: A general journal is defined as a book in which the raw data pertaining to the transactions or…
Q: Chance. as spot wel ers for manufacturers. The following budgeted cost data for 2020 is available…
A: Labour rates are used to calculate both the price of employee time invoiced to customers and the…
Q: Required: Determine the amount of dividends to be paid to preferred and common shareholders in each…
A: The holders of cumulative preferred stock are entitled to dividends that were missed…
Q: The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a…
A: Cost of goods sold is the cost incurred on the making of the goods sold by the entity in the…
Q: Assume that TDW Corporation (calendar year-end) has 2022 taxable income of $668,000 for purposes of…
A: Answer:- Depreciation meaning:- Depreciation is the term for the decline in value of tangible asses…
Q: ! Required information. [The following information applies to the questions displayed below.] A…
A: DIRECT LABOUR COST VARIANCEDirect Labour Cost Variance is the difference between the actual direct…
Q: Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2024, and the…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…
A: Profit Margin RatioA financial indicator used to assess a company's profitability is the profit…
Q: Given the following information, what is Contribution Margin: Sales: $125,000 Fixed Overhead:…
A: The Contribution Margins per unit, target sales level and target profit levels are important part of…
Q: Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget JB 50 JB 60
A: Direct material purchase budget is the statement which is prepared by the entity for the purpose of…
Q: A company's December 31 work sheet for the current period appears below. Based on the information…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: Two employees worked one week and were paid salaries of $2500. The journal entry would: debit Cash…
A: The journal entry is recorded under the fundamental rules of accounting. The income, liability, and…
Q: On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent…
A: Interest received at the end of each year will result in the compounding effect on the deposit at…
Q: Under IFRS, research must be expensed but some development expenditures may be capitalized. To…
A: IFRS stands for International Financial Reporting Standards. Research and development expenses are…
Q: K ..e Baxter Company issued $669,000, 8%, 4-year bonds for 101 with interest paid annually. Assuming…
A: Bonds are long term types of company on which interest is table at a rate at the time of issue in…
Q: Required information [The following information applies to the questions displayed below] Carlberg…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Summer Company holds assets with a fair value of $122,000 and a book value of $93,000 and…
A: An intangible asset called goodwill is connected to the acquisition of one business by another. It…
Q: Following is the adjusted trial balance, with accounts in alphabetical order, for Accounts…
A: Lets understand the basics.Closing entries are required to pass to close temporary account in the…
Q: Which of the following is not on a job cost sheet? a. Costs charged to a specific job b. Cost of…
A: Lets understand the baiscsJob cost sheet provides information regarding the actual cost of the job.…
Q: Required information Convers Corporation (calendar year-end) acquired the following assets during…
A: MACRS stands for Modified Accelerated Cost Recovery System.It is a method of depreciation. it is…
Q: Flesch Corporation produces and sells two products. In the most recent month, Product C908 had sales…
A: Break even point is the point where there is no profit or loss situation. It means profit would be…
Q: What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1.…
A: Depreciation allows a portion of a fixed asset's cost to the income generated by the asset. Because…
Q: Formica Inc. is making an effort to reduce finished goods inventories at the end of the period to…
A: The cost of goods manufactured refers to the total production costs incurred by a company during a…
Vaibh
Step by step
Solved in 4 steps
- Sweeney originally contributed $302,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $181,200 and he withdrew $120,800 cash. The LLC's liabilities are $151,000, of which Sweeney's share is $37,750. The LLC has $75,500 of hot assets, of which Sweeney's share is $18,875. Sweeney sells his LLC interest to Jana for $398,640 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $ 35,000 X , of which $ 15,000 x recognized as ordinary income, with the remaining $ 20,000 X recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? 245,000 XSweeney originally contributed $190,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $114,000 and he withdrew $76,000 cash. The LLC's liabilities are $95,000, of which Sweeney's share is $23,750. The LLC has $47,500 of hot assets, of which Sweeney's share is $11,875. Sweeney sells his LLC interest to Jana for $250,800 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $fill in the blank 1 , of which $fill in the blank 2 recognized as ordinary income, with the remaining $fill in the blank 3 recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? $fill in the blank 4Sweeney originally contributed $334,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $200,400 and he withdrew $133,600 cash. The LLC's liabilities are $167,000, of which Sweeney's share is $41,750. The LLC has $83,500 of hot assets, of which Sweeney's share is $20,875. Sweeney sells his LLC interest to Jana for $440,880 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $fill in the blank 1, of which $fill in the blank 2 recognized as ordinary income, with the remaining $fill in the blank 3 recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest?
- Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC’s income was $90,000 and he withdrew $75,000 cash. The LLC’s liabilities are $80,000, of which Sweeney’s share is $20,000. The LLC has $40,000 of hot assets, of which Sweeney’s share is $10,000. Sweeney sells his LLC interest to Jana for $225,000 cash, with Jana also assuming Sweeney’s share of the LLC’s liabilities. How much is Sweeney’s gain on the sale, and what is its character? How much is Jana’s adjusted basis for her LLC interest?27. Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC’s income was $90,000 and he withdrew $75,000 cash. The LLC’s liabilities are $80,000, of which Sweeney’s share is $20,000. The LLC has $40,000 of hot assets, of which Sweeney’s share is $10,000. Sweeney sells his LLC interest to Jana for $225,000 cash, with Jana assuming Sweeney’s share of the LLC’s liabilities. How much is Sweeney’s gain on the sale, and what is its character? How much is Jana’s adjusted basis for her LLC interest? My answer. Sweeny’s gain on sale is a 125,000 and it is a capital gain. Jana’s adjusted basis is 225,000 for her LLC Interest. Please advise.Kelly contributed $15,000 cash and tangible property with an adjusted basis of $12,000 and fair market value of $24,000 in exchange for 30 of the 100 outstanding shares of an Š corporation. In Year 1, the S corporation entered into a recourse debt agreement for $36,000 and a nonrecourse debt agreement, secured by equipment of the S corporation, for $14,000. In the case of default on the recourse debt, each shareholder is protected by personal liability insurance. What is Kelly's at-risk limitation on losses?
- Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary received the remaining 20%. Ron contributed land with an FMV of $70,000 and an adjusted basis of $20,000. The corporation also assumed a $30,000 liability on the property. David contributed land with an FMV of $30,000 and an adjusted basis of $15,000. David also contributed $10,000 in cash. Mary received her stock for services rendered. She normally would bill $20,000 for these services. What is David's basis in the corporate stock received? a.$0 b.$10,000 c.$25,000 d.$40,000Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $15,000 $15,000 Land* 120,000 440,000 Totals $135,000 $455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) b. What is Kevan’s tax basis in his LLC interest? Jerry Dave Kevan Gain or loss recognizedKevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Fair Market Value Basis Kevan: Cash Land* $ 15,000 120,000 $ 15,000 Totals $ 135,000 440,000 $455,000 *Nonrecourse liability secured by the land equals $210,000. Each member received a one-third capital and profits interest in the LLC. Note: Leave no answer blank. Enter zero if applicable. Round to the nearest whole thousand. b. What is Kevan's tax basis in his LLC interest? Tax basis
- Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $15,000 $15,000 Land* 120,000 440,000 Totals $135,000 $455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) c. What tax basis do Jerry and Dave have in their LLC interests? Jerry Dave Tax basisKevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $15,000 $15,000 Land* 120,000 440,000 Totals $135,000 $455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) e. Prepare a tax basis balance sheet for Albee LLC showing the tax capital accounts for the members. What is Kevan’s share of the LLC’s inside basis? (Enter any capital account with a debit balance as a negative amount.) Albee , LLC Tax Basis Balance Sheet Tax Basis Assets: Cash Land Totals Liabilities and capital: Mortgage debt Capital-Kevan Capital-Jerry Capital-Dave TotalsKevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $15,000 $15,000 Land* 120,000 440,000 Totals $135,000 $455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) a. How much gain or loss will Jerry, Dave, and Kevan recognize on the contributions? Jerry Dave Kevan Gain or loss recognized