On December 31,Kate Sells Her 20% Interest (With a Basis

question 105

Essay

On December 31,Kate sells her 20% interest (with a basis of $18,000 which,of course,includes a share of partnership liabilities)in the KLM Partnership to Karl for $27,000 cash plus assumption of her $6,000 share of liabilities.On that date,the partnership has the following balance sheet:
What are the amount and character of the gain that Kate must recognize on the sale?

Understand cost behavior and how costs are affected by changes in activity level.

Identify costs as direct or indirect relative to a specific cost object.

Analyze the financial impact of different business decisions.

Understand the distinctions between product costs and period costs.

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Definitions:

drawOval

A method in the Java graphics class used to draw an oval shape based on specified dimensions and coordinates.

fillRect

In computer graphics, the "fillRect" method is used to draw and fill a rectangle with a specific color or pattern in a graphical user interface.

Java Applet

A Java applet was a small application written in Java, designed to be transmitted over the internet and executed by a web browser, though largely obsolete today.

Combo Box

A graphical user interface component that combines a drop-down box with the option for the user to type an entry.