Lydia and Oliver wish to form a partnership to conduct a new business. They each contribute the following assets in exchange for equal interests in LO Partnership. Lydia's tax basis in the contributed equipment is $22,000 and Oliver's tax basis in the contributed equipment is $57,000. Lydia Oliver
Cash $50,000 $70,000
Business equipment (FMV)​50,000 30,000
a. Compute each individual's realized and recognized gain or loss on the formation of LO Partnership.
b. Compute each individual's tax basis in their half interest in LO Partnership.
c. Compute the partnership's tax basis in the equipment contributed by each individual partner.
Yes, the question is based on U. S. taxation.

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Cindy recently played in a softball game in which she misplayed a ground ball for an error. later, in the same game, she made a great catch on a very difficult play. according to the self-serving bias, she would attribute her error to and her good catch to her

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.