T sold his son a 30% interest in his partnership on January 1, of the current year. T retained a 50% interest and the remaining partner is T's father. The partnership had taxable income of $100,000 for the year. T DREW no salary from the partnership. Capital is a material income-producing factor. The partnership and the partners have a calendar-year tax year. What is T's share of taxable income if T performed services worth a reasonable compensation compensation of $30,000 and the son performed no services?$25,000
$40,000
$65,000
$80,000
A partnership has the following assets. The book basis and tax basis are the same amount.Cash Basis $3,000 Value $3,000
Machine Basis $10,000 Value $10,000
Accounts payable Basis $8,000 Value $8,000
Note payable Basis $15,000 Value $15,000If the note payable is a recourse mortgage on the machine, what is the amount of the minimum gain?
$5,000
$10,000
$13,000
$0
A disproportionate distribution can occur in which of the following situations?The partnership has 100% capital assets.
The partnership only owns inventory.
The partnership has 100% ordinary assets.
The partnership has a combination of ordinary and capital assets.
6 years ago
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