Identify which of the following statements is false.
A) On June 30 of the current year, James Roe sells his interest in the Roe & Doe Partnership for $30,000. Roe's adjusted basis in Roe & Doe at June 30 is $7,500 before apportionment of any partnership income for the current year. The Roe & Doe Partnership uses the calendar year as its tax year and has no liabilities on June 30. Roe's distributive share of partnership income up to June 30 is $22,500. Roe acquired his interest in the partnership five years ago. Roe will have a long-term capital gain on the sale of his interest of $22,500.
B) Section 751 assets include all inventory and all unrealized receivables in a sale or exchange situation.
C) When a partnership interest is sold, the buyer and seller can allocate the sale price among the Sec. 751 assets and non-Sec. 751 assets in any reasonable manner.
D) Statements B and C are true.
A) On June 30 of the current year, James Roe sells his interest in the Roe & Doe Partnership for $30,000. Roe's adjusted basis in Roe & Doe at June 30 is $7,500 before apportionment of any partnership income for the current year. The Roe & Doe Partnership uses the calendar year as its tax year and has no liabilities on June 30. Roe's distributive share of partnership income up to June 30 is $22,500. Roe acquired his interest in the partnership five years ago. Roe will have a long-term capital gain on the sale of his interest of $22,500.
You might also like to view...
Sivret Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:Total machine-hours80,000Total fixed manufacturing overhead cost$624,000Variable manufacturing overhead per machine-hour$3.10Recently, Job M598 was completed with the following characteristics:Number of units in the job60Total machine-hours300Direct materials$645Direct labor cost$9,000The amount of overhead applied to Job M598 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $930 B. $2,340 C. $3,270 D. $4,200
The predetermined overhead allocation rate is the rate used to ________.
A) assign direct material costs to jobs B) allocate actual manufacturing overhead costs incurred during a period C) allocate estimated manufacturing overhead costs to jobs D) trace manufacturing and nonmanufacturing costs to jobs
How would the goals and decision making of managers in a B Corporation differ, at least theoretically, from those in a C Corporation?
a. They would be nonprofit in structure instead of for-profit. b. They would not seek to maximize shareholder wealth and instead focus exclusively on community and environmental contributions. c. They would be somewhat less focused on maximizing shareholder wealth and more on ethical concerns. d. They would be exempt from taxation if a certain threshold of ethical action is met.
The performance measure that considers routine interruptions is known as ____________________ capacity
Fill in the blank(s) with correct word