Mary Meagan, And Kelsey Decide To Merge Their Accounting Practices

Submitted By singlecg
Words: 507
Pages: 3
Open Document
21 Points Missed (___) Score ACCT 751 - FALL 2012 Quiz 2 Name ______________________________________________ (I attest that I worked independently on this quiz)

This quiz is due on Monday 10/1, by 2:30 pm. You are to work independently. You must show your work (and explain your position where necessary) to receive any credit (the correct answer will be graded a zero if work is not shown). 1. Mary, Meagan, and Kelsey decide to merge their accounting practices. The following assets and/or services are contributed to the MMK partnership.
4444444444444444444444444444444444444444444444444444444444444444444444444

Name Mary Meagan Kelsey

Description of Property Accounts Receivable Equipment (original cost of $200,000) Land Cash Services

FMV $100,000 $220,000 $200,000 $50,000 ???

Basis $ -0$40,000 $220,000 $50,000

Debt N/A $120,000 N/A N/A

4444444444444444444444444444444444444444444444444444444444444444444444444

In return for their contributions, Mary and Meagan receive a 40% interest and Kelsey receives a 20% unrestricted interest. Assume that under state law, the partnership assumes the debt (becomes the primary obligor). Also, the services to be rendered by Kelsey will be to the partnership over the next year. As a result of the partnership formation, compute the following assuming there is no IRC Section 754 election (not yet covered in class). 1. Gain or loss recognized (if any) by Mary. Indicate the character of the gain or loss (2 points).

2.

Gain or loss recognized (if any) by Kelsey. Indicate the character of the gain or loss (2 points).

3.

Gain or loss recognized (if any) by the MMK partnership under current law (not proposed reg.) (2 points).

4.

Basis of the Equipment in the hands of the partnership (not proposed reg.) (2 points).

5.

Basis of Meagan's interest immediately after formation (2 points).

6. 7.

Gain or loss recognized (if any) by the MMK partnership under the proposed regulations (1 point). Gain or loss recognized (if any) by Mary if the entity had been a corporation (1 point).

8.

Gain
Show More

Related Documents: Mary Meagan, And Kelsey Decide To Merge Their Accounting Practices

Ethic: Customer Service and Tezra Holmes Essay

Tezra Holmes 1584 Belmont ave Atlanta, Georgia 30310 (Home) 404-752-8079 δ (Cellular) 770-572-9692 tezrah1@yahoo.com OBJECTIVE I am seeking a full-time position in the Customer Service, Administrative, Accounting SUMMARY Administrative/Clerical Customer Service Type 25 wpm/Data Entry Bookkeeping/Filing Cash Handling Creative/Energetic/Positive Manage multiple tasks Integrity/Highly Ethical EXPERIENCE Department of Treasury, IRS - Doraville, GA…

Words 494 - Pages 2

Essay on Explaining Basic Accounting Concepts Revised 2

Explaining Basic Accounting Concepts and Business Structures Tiffany Jacobs ACC/537 Financial Accounting Word Count: 752 Generally Accepted Accounting Principles & Sources General Accepted Accounting Principles (GAAP) are standards and procedures used by companies to assemble their financial statements. A company’s financial are regulated by these standards in order to provide sound support documentation to end- users. These reports have internal end-users such as management…

Words 744 - Pages 3

APA Final 1 Essay

Organizational Restructuring: A Literature Review Wilmington University Phani Kumar Pillarisetty April 2015 Abstract Literature surrounding organizational restructuring is broad based and generally categorized by specific areas of expertise (e.g. human resources, financial, or strategic application); thereby, reducing the possibility of cross category insight. The focus of this paper was to selectively identify and review significant research contained in literature on organizational restructuring…

Words 3052 - Pages 13

Essay on Invoice and Purchases Ledger Control

Accounting Qualification Practice Assessment Basic Accounting I (Level 2) Questions The Association of Accounting Technicians April 2010 Basic Accounting I – Sample Assessment Time allowance: 2 hours Section 1 Task 1.1 The following transactions all took place on 30 June and have been entered into the sales day book as shown below. No entries have yet been made into the ledger system. Date 20XX | Details | Invoice number | Total £ | VAT @ 17.5% £ | Net £ | 30 Jun30…

Words 2578 - Pages 11

Accounting: Generally Accepted Accounting Principles and Heat Russia Distribution Essay

January-December 2011 The Interim Statement is based on the audited 2011 Financial Statements approved by the Board on 31 January 2012. Condensed consolidated income statement EUR million Note Q4 2011 Q4 2010 4 1,667 40 -659 -142 -155 -243 508 71 579 19 -78 13 7 -8 -66 532 -88 444 1,902 23 -910 -133 -147 -194 541 -220 321 21 -57 19 -8 -11 -57 285 -25 260 2011 2010 Sales Other income Materials and services Employee benefit costs Depreciation, amortisation and impairment charges Other…

Words 7021 - Pages 29

Revenue-Recognition Problems in the Communications Equipment Industry Essay

9-107-025 REV: AUGUST 23, 2007 PAUL HEALY Revenue-Recognition Problems in the Communications Equipment Industry On November 21, 2000, Lucent Technologies announced that it was revising its fourth-quarter results as a result of revenue-recognition problems discovered by its auditors during the year-end financial review. The revision lowered revenues by $125 million and earnings per share by 2 cents from 18 cents. In response, Lucent’s stock price fell by 16%, to $17.56. One month later, on…

Words 7379 - Pages 30

Fundamental Analysis and Aswath Damodaran Essay

Valuation Aswath Damodaran www.damodaran.com Aswath Damodaran 1 Some Initial Thoughts " One hundred thousand lemmings cannot be wrong" Graffiti Aswath Damodaran 2 Misconceptions about Valuation  Myth 1: A valuation is an objective search for “true” value • •  Myth 2.: A good valuation provides a precise estimate of value • •  Truth 1.1: All valuations are biased. The only questions are how much and in which direction. Truth 1.2: The direction and magnitude of the bias in your valuation…

Words 9402 - Pages 38

Finincial Institution Management Essay

25751 Financial Institution Management UTS: Business School of Finance and Economics Name | Student ID | | | | | | | | | Submission Date: TABLE OF CONTENTS Executive Summary 3 1. Company Overview 4 Commonwealth Bank of Australia 4 Bendigo Bank/Bendigo and Adelaide Bank 5 2. Current Measures of Absolute Size 6 2.1 Total Assets 6 2.2 Total Revenue 6 2.3 Number of Full-time Equivalent Employees 6 2.4 Market Capitalization 6 3. Composition…

Words 6582 - Pages 27

Essay about Nora: Lung Cancer and Self-reported Shs Exposure

RESEARCH AND PRACTICE Deaths From Secondhand Smoke Exposure in the United States: Economic Implications Wendy Max, PhD, Hai-Yen Sung, PhD, and Yanling Shi, MS Exposure to secondhand smoke (SHS) has been linked to several fatal illnesses among infants and adults.1 Worldwide, 603 000 deaths have been attributed to SHS exposure.2 In the United States, the Centers for Disease Control and Prevention reported that 46 000 adults died from ischemic heart disease (IHD) and 3400 adults died…

Words 5521 - Pages 23