Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Cindy sold her interest in a partnership for $20,000 cash when her outside basis was $5,000. She was relieved of her $25,000 share of partnership liabilities. What is Cindy's realized value from the sale of her partnership interest?

Sagot :

Ritmeks

Answer:

$40,000

Explanation:

Cindy sold her interest in a partnership business for $20,000

Her outside basis is $5,000

She was relieved of $25,000 partnership shares

Therefore her realized value from the sale of her partnership interest can be calculated as follows

=>$20,000 + $25,000 - $5,000

=>$45,000 - $5,000

= $40,000

Hence her realised value is $40,000

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.