TAX 9900 Study Guide - Final Guide: Ordinary Income, Capital Gain, Arkansas Highway 18
Document Summary
Chandler wants to purchase the entire business for . Assume the partnership has the following assets (and no liabilities): Monica"s outside basis is , and rachel"s outside basis is . (i) what are the consequences (i. e. , amount and character of gain) to. Monica and rachel if the partnership sells all of its assets to. The partnership will recognize a gain of . Xyz stock - long term capital gain. Rachel and monica are treated as having their interest sold for the cash they receive. Their gain would be allocated 40% and 60% respectively. The ordinary gain from selling inventory, a/r, and depreciation must be subtracted from the gain to figure out the capital gain. 1 (iii) what are the consequences to rachel and the partnership if. The results would not change for rachel. Her outside basis = and her gain would be (-). Inventory = ( - *60%) The partnership has the following assets (and no liabilities):
