Connie Owns a One-Third Capital and Profits Interest in the Calendar-Year

question 168

Essay

Connie owns a one-third capital and profits interest in the calendar-year CDB Partnership.Her adjusted basis for her partnership interest was $120,000 when she received a proportionate nonliquidating distribution of the following assets: Partnership's Basis in Asset Asset's Fair Market Value Cash Land held for investment $140,000 30,000 $140,000 60,000 ​
a.Calculate Connie's recognized gain or loss on the distribution,if any.
b.Calculate Connie's basis in the land received.
c.Calculate Connie's basis for her partnership interest after the distribution.

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Definitions:

Labor Quantity Variance

The difference between the actual hours of labor used and the standard hours expected for the level of production, often related to efficiency.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.

Payroll

The total amount of wages, salaries, and other earnings paid by a business to its employees.

Labor Efficiency

The measure of the amount of work accomplished with a specific amount of labor input.