Edward Chance sold his 1/3 interest in CCS Partnership to Greg Randall for $112,000 cash on January 1, 2022. Chance’s basis in the partnership interest was $90,000 on the date of the sale. An analysis of the financial records of the partnership revealed the following: Asset A/B FMV Accounts Receivable $0 $15,000 Inventory $80,000 $89,000 Equipment $190,000 $232,000 What is Chance’s recognized gain on the sale of his partnership interest? What is the character(s) of his gain on the sale?
Edward Chance sold his 1/3 interest in CCS Partnership to Greg Randall for $112,000 cash on January 1, 2022. Chance’s basis in the partnership interest was $90,000 on the date of the sale. An analysis of the financial records of the partnership revealed the following: Asset A/B FMV Accounts Receivable $0 $15,000 Inventory $80,000 $89,000 Equipment $190,000 $232,000 What is Chance’s recognized gain on the sale of his partnership interest? What is the character(s) of his gain on the sale?
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Question
Edward Chance sold his 1/3 interest in CCS
Asset A/B FMV
Accounts Receivable $0 $15,000
Inventory $80,000 $89,000
Equipment $190,000 $232,000
What is Chance’s recognized gain on the sale of his partnership interest?
What is the character(s) of his gain on the sale?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT