ACCT 424 Week 8 Final Exam Answers

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$120,000) to the ABC Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of partnership operations, ABC had net taxable income of $60,000 and tax-exempt income of $56,000. The partnership distributed $24,000 cash to Naomi. Her share of partnership recourse liabilities on the last day of the partnership year was $32,000. Which is Naomi’s adjusted basis (outside basis) for her partnership interest at yearend? (Points
: 5) $110,000 $146,000 $144,000 $196,000 None of the above 4. (TCO 8) During 20×2, Houston Nutt, the sole shareholder of a calendar-year S corporation, received a distribution of $16,000. On December 31, 20×1, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct? (Points : 5) Nutt recognizes a $1,000 LTCG. Nutt’s stock basis will be
Page 1 and 2: ACCT 424 Week 8 Final Exam Answers
Page 3 and 4: a basis of $200,000 in the land. Sa
Page 5 and 6: accumulated E & P of $75,000. For t
Page 7 and 8: John’s grandfather owns 200 share
Page 9 and 10: gain. None of the above 9. (TCO 6)
Page 11 and 12: contrary, to the IRS position. None
Page 13: personally liable. S&R sustained a
Page 17 and 18: asis? (Points : 5) Depletion in exc
Page 19: to her granddaughter, Tracy. As a r

ACCT 424 Week 8 Final Exam Answers

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