ACC 575 ACC575 Week 9 Quiz
ACC 575 Week 9 Quiz
1.
Turner, Reed, and Sumner are equal partners in TRS partnership. Turner contributed land with an adjusted basis of $20,000 and a fair market value (FMV) of $50,000. Reed contributed equipment with an adjusted basis of $40,000 and an FMV of $50,000. Sumner provided services worth $50,000. What amount of income is recognized as a result of the transfers?
2.
Barker acquired a 50% interest in Kode Partnership by contributing $20,000 cash and a building with an adjusted basis of $26,000 and a fair market value of $42,000. The building was subject to a $10,000 mortgage which was assumed by Kode.
The other partners contributed cash only.
3.
Hope is a tax-exempt religious organization. Which of the following activities is (are) consistent with Hope's tax-exempt status?
4.
The following information pertains to property contributed by Gray on July 1, 2008, for a 40% interest in the capital and profits of Kag & Gray, a partnership:
5.
While preparing a partnership tax return, the accountant discovered that ABC Partnership distributed property to Anne, a partner, in a nonliquidating transfer. No money was distributed to Anne during the year, the property was in the partnership for over five years, and no debt was attached to the property. Anne had a basis in her partnership interest of $10,000. The partnership had an adjusted basis of $20,000 in the property distributed to Anne. Which of the following are the tax consequences to Anne?
6.
The organizational test to qualify a public service charitable entity as tax exempt requires the articles of organization to
7.
Bailey contributed land with a fair market value of $75,000 and an adjusted basis of $25,000 to the ABC Partnership in exchange for a 30% interest. The partnership assumed Bailey's $10,000 recourse mortgage on the land.
8.
On June 1, 2014, Kelly received a 10% interest in Rock Co., a partnership, for services contributed to the partnership. Rock's net assets at that date had a basis of $70,000 and a fair market value of $100,000.
9.
Under which of the following circumstances is a partnership that is not an electing large partnership considered terminated for income tax purposes?
10.
Stone and Frazier decided to terminate the Woodwest Partnership as of December 31. On that date, Woodwest's balance sheet was as follows:
11.
On January 3, 2014, the partners' interests in the capital, profits, and losses of Able Partnership were:
12.
Thompson's basis in Starlight Partnership was $60,000 at the beginning of the year. Thompson materially participates in the partnership's business.
Thompson received $20,000 in cash distributions during the year. Thompson's share of Starlight's current operations was a $65,000 ordinary loss and a $15,000 net long-term capital gain.
13.
Evan, a 25% partner in Vista Partnership, received a $20,000 guaranteed payment in 2008 for deductible services rendered to the partnership. Guaranteed payments were not made to any other partner. Vista's 2008 partnership income consisted of:
14.
Smith received a one-third interest of a partnership by contributing $3,000 in cash, stock with a fair market value of $5,000 and a basis of $2,000, and a new computer that cost Smith $2,500.
15.
The adjusted basis of Jody's partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000.
16.
Day's adjusted basis in LMN Partnership interest is $50,000. During the year Day received a nonliquidating distribution of $25,000 cash plus land with an adjusted basis of $15,000 to LMN, and a fair market value of $20,000.
17.
On January 2, 2009, Arch and Bean contribute cash equally to form the JK Partnership.
Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively.
For 2009, the partnership's ordinary income was $40,000. A distribution of $5,000 was made to Arch during 2009.
What is Arch's share of taxable income for 2009
18.
On January 4, 2009, Smith and White contributed $4,000 and $6,000 in cash, respectively, and formed the Macro General Partnership. The partnership agreement allocated profits and losses 40% to Smith and 60% to White.
In 2009, Macro purchased property from an unrelated seller for $10,000 cash and a $40,000 mortgage note that was the general liability of the partnership.
19.
Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, 2009, was $5,000. Fabco made no distributions to the partners during 2009, and recorded the following:
20.
Woods Corporation's federal taxable income for the current year is $250,000 which includes the following:
$15,000 of deducted state income taxes
$25,000 of interest income on United States Treasury Bonds
Woods also had $10,000 of interest from state and local bonds that it owns. Federal depreciation in excess of that allowed for state purposes was $7,000. Woods operates exclusively in State F, which does not tax income earned on federal obligations, taxes all municipal bond interest, and disallows a deduction for state income taxes. What is Wood's state taxable income?
