Joan Is a 30% Partner in the OJT Partnership When

question 4

Essay

Joan is a 30% partner in the OJT Partnership when she sells her entire interest to Crissy for $100,000 cash. At the time of the sale, Joan's basis in OJT is $63,000 (which includes her $10,000 share of OJT liabilities). OJT does not have any hot assets. What is the amount and character of Joan's gain or loss on the sale?

Analyze cash flows from operating, investing, and financing activities.

Assess the significance of disclosure in the notes to the financial statements regarding accounting policies.

Utilize balance sheet data to prepare and understand cash flow statements.

Understand the concept of contribution margin and how it is calculated.

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Definitions:

Marine Fish

Fish species that inhabit saltwater environments, as opposed to freshwater species, playing crucial roles in marine ecosystems.

Aquaponics

A sustainable food production system that combines traditional aquaculture with hydroponics in a symbiotic environment.

Aquaculture

The cultivation of aquatic organisms such as fish, shellfish, and plants under controlled conditions, usually for food production.

Perennials

Plants that live for more than two years, typically growing and blooming over the spring and summer, dying back every autumn and winter, and then returning in the spring from their root-stock.