[The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land Totals Liabilities and capital: Nonrecourse liabilities Lance* Robert* Totals Tax basis Dave Basis $ 220,000 300,000 100,000 $ 620,000 Lance $ 200,000 210,000 210,000 $ 620,000 *Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) Robert Fair Market Value b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest. $ 220,000 330,000 260,000 $ 810,000 $ 200,000 305,000 305,000 $ 810,000
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- ! Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land cana Totals Liabilities and capital: Nonrecourse liabilities Tatsuki* Robert* Totals Tax basis $ Dave 0 Basis *Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable. Tatsuki $ 150,000 200,000 150,000 $ 500,000 b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest. Robert $ 100,000 200,000 200,000 $…Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Fair Market Value Basis Assets: Cash $ 160,000 Investments $ 160,000 290,000 100,000 314,000 200,000 Land Totals $ 550,000 $ 674,000 Liabilities and capital: Nonrecourse liabilities $ 180,000 $ 180,000 Lance* 247,000 185,000 185,000 247,000 Robert* Totals $ 550,000 $ 674,000 *Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) a. Compute and characterize any gain or loss Dave may have…[The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Fair Market Value Basis Assets: Cash Investments $ 220,000 300,000 100,000 $ 220,000 330,000 260,000 Land Barca Totals $ 620,000 $ 810,000 Liabilities and capital: DLAD Nonrecourse liabilities $ 200,000 $ 200,000 Lance* 210,000 210,000 305,000 305,000 Robert* Totals $ 620,000 $ 810,000 *Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) c. Prepare a balance sheet for Cirque Capital immediately after…
- Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land Basis $ 260,000 300,000 200,000 Totals $ 760,000 Liabilities and capital: $ 180,000 290,000 290,000 $ 760,000 Fair Market Value $ 260,000 322,000 390,000 $ 972,000 $ 180,000 396,000 396,000 Nonrecourse liabilities Tatsuki* Robert* Totals $ 972,000 *Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable.Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund. a. Cash contribution to the sinking fund, P1,000,000. b. Acquisition of securities at par by the trustee, P700,000. c. The trustee receives interest on the securities, P60,000. d. The trustee pays expenses of P30,000. e. The trustee sells the securities for P800,000 plus accrued interest of P10,000. f. The trustee pays bonds payable of P1,000,000 and interest of P100,000. g. The trustee remits the remaining cash to Bayombong Company. How much was remitted by the trustee to Bayombong Company?Marigold Corporation had the following activities in 2023: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. (a) Sold land for $196,000. Purchased an FV-NI investment in common shares for $14,200. Purchased inventory for $852,000 with cash. Received $73,000 cash from bank borrowings. Received interest for $11,500. Purchased equipment for $483,000 in exchange for common shares. Issued common shares for $370,000 cash. Recorded an unrealized gain of $3,750 on investments accounted for using the FV-NI model. Purchased investments in bonds, reported at amortized cost for $59,600. Declared and paid a dividend of $17,600 (charged to retained earnings). Sold investments in bonds reported at amortized cost, with a carrying amount of $406,800, for $416,200. Received dividends of $5,000 on FV-NI investments. (b) Your answer is correct. Calculate the amount that Marigold should report as net cash provided (used) by investing activities on its statement of cash flows under IFRS. Under IFRS, assume Marigold…
- Marigold Corporation had the following activities in 2023: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. (a) Sold land for $196,000. Purchased an FV-NI investment in common shares for $14,200. Purchased inventory for $852,000 with cash. Received $73,000 cash from bank borrowings. Received interest for $11,500. Purchased equipment for $483,000 in exchange for common shares. Issued common shares for $370,000 cash. Recorded an unrealized gain of $3,750 on investments accounted for using the FV-NI model. Purchased investments in bonds, reported at amortized cost for $59,600. Declared and paid a dividend of $17,600 (charged to retained earnings). Sold investments in bonds reported at amortized cost, with a carrying amount of $406,800, for $416,200. Received dividends of $5,000 on FV-NI investments. Calculate the amount that Marigold should report as net cash provided (used) by investing activities on its statement of cash flows under IFRS. Under IFRS, assume Marigold adopts the policy of…Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Kevan: Cash Land* Totals Basis Fair Market Value $ 15,000 120,000 $ 15,000 440,000 $ 135,000 $ 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. f. If the lender holding the nonrecourse liability secured by Kevan's land required Kevan to guarantee 1/3 of the liability and Jerry to guarantee the remaining 2/3 of the liability when Albee LLC was formed, how much gain or loss will Kevan recognize? X Answer is complete but not entirely correct. Gain or loss recognized $ 0XCan you please help me understand how to solve problems like this one by giving a detailed solution? Would appreciate your help so much. Thank you! PROBLEM: The following data were taken from the statement of affairs of ROBINSONS Corp.: Assets pledged for fully secured liabilities (current fairvalue, $75,000) $90,000 Assets pledged for partially secured liabilities (currentfair value $52,000) $74,000 Free assets (current fair value, $40,000) $70,000 Unsecured liabilities with priority $7,000 Fully secured liabilities $30,000 Partially secured liabilities $60,000 Unsecured liabilities without priority $112,000 *The amount that will be paid to creditors with priority is:a. 7,000 b. 6,000 c. 7,500 d. 6,200*The amount to be paid fully secured creditors is:a. 30,000 b. 32,000 c. 20,000 d. 35,000*The amount to be paid to partially secured creditors is:a. 52,700 b. 57,200 c. 56,200 d. 57,000*The amount to be paid to unsecured creditors:a. 78,200 b. 70,800 c. 72,000 d.…
- X, resident citizen, had the following information for the year 2022:Gain from sale of office equipment, P20,000Gain from sale of land not used in business (selling price of P300,000), P100,000Gain from sale of shares of stock directly to the buyer, P50,000Gain from sale of shares of stock through the stock exchange (selling price, P200,000), P10,000Bad debt recovery, P50,000How much is the total capital gains tax?John Kim agrees to contribute equipment with a fair market value of $5,000 in exchange for 100 shares of Rio Inc.'s common stock with a par value of $1 per share. Rio will record this transaction as a credit to which of the following accounts? (Check all that apply.) Cash Common Stock Equipment Paid-in Capital in Excess of Land Paid-in Capital in Excess of Par ValueSandhill Corporation purchased for $288,000 a 25% interest in Murphy, Inc. This investment enables Sandhill to exert significant influence over Murphy. During the year, Murphy earned net income of $173,000 and paid dividends of $54,000. Prepare Sandhill's journal entries related to this investment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)