GCCCD Assets and No Liabilities Excel Spreadsheet
Question Description
I’m working on a accounting question and need support to help me learn.
Problem 1
Stavro is a one-third partner in the Hans Partnership, with an outside basis of $156,000 on January 1. Stavro sells his partnership interest to Aimee on January 1 for $200,000 cash.
The Hans Partnership has the following assets and no liabilities as of January 1:
| Basis | FMV | ||
| Cash | $27,000 | $27,000 | |
|
Accounts receivable |
$0 | $118,000 | |
| Inventory | $132,500 | $121,500 | |
| Equipment | $0 | $237,500 | |
|
Stock investment |
$67,500 | $96,000 | |
| Total | $227,000 | $600,000 |
The equipment was purchased for $360,000. The stock was purchased seven years ago.
What is the amount and character of Stavro’s gain or loss on the sale of his partnership interest?
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