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ACC 610 Week Three Assignment.docx

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ACC610 Week Three Exercises Ashford University ACC610 Advanced Federal Taxation Week Three Exercises Chapter 10 €“ Problem 28 Emma and Laine form the equal EL Partnership. Emma contributes ca ... sh of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000. ï‚·a. How much gain, if any, must Emma recognize on the transfer? Must Laine recognize any gain? If so, how much? Under § 721 there is no gain for Emma to recognized on the transfer as the goal of Congress was to allow the transfer of property to a partnership to be neutral for tax purposes [ CITATION Hof16 \l 1033 ]. Any gain Emma may have would be deferred to the time in which she sells her interest in the partnership. The gain of the $60,000, the difference between the basis and fair market value of the property Laine contributed will not be considered until the property is sol. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]

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