need help understanding how to get part c. c. If Padgett sells the land several years later for $443,250, how much tax gain will Nova and Oscar report?Nova reports as295,500✔ gain and Oscar's gain is $184,688 X. When Padgett Properties LLC was formed, Nova contributed land (value of $295,500 and basis of $73,875) and $147,750 cash, andOscar contributed cash of $443,250. Both partners received a 50% interest in partnership profits and capital.a. How is the land recorded for § 704(b) book capital account purposes?For § 704(b) book capital account purposes, Padgett records the land at s295,500

A partnership is an agreement between two person or among a group of persons to run a business for…

Answered: c. If Padgett sells the land several…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Craig Roberts purchased one-half of Ennis Leighton's interest in the Vale and Leighton partnership for $34,000. Prior to the investment, land was revalued to a market value of $130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net income equally. Leighton had a capital balance of $36,000 prior to these transactions. a. Provide the journal entry for the revaluation of land.
Under the following four independent assumptions, prepare the journal entries for the sale of the land and buildings, allocation of any loss or gain,any deficits, the payment of the liability, and the distributions to the partners if: A) the land and buildings were sold for 180,000, and any partners with a resulting deficits can and do pay the amount of their deficits

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c. If Padgett sells the land several years later for $443,250, how much tax gain will Nova and Oscar report? Nova reports as 295,500✔ gain and Oscar's gain is $ 184,688 X.