Business, 14.10.2020 01:01 IntellTanito

A and B contribute $100,000 upon formation of a limited partnership. A is a general partner and B is a limited partner. The partnership purchases an office building on leased land for $200,000 and elects straight-line cost recovery. Assume (for simplicity) that the property has a 10-year recovery period. The partnership agreement allocates all items of income and loss equally with the exception of the cost recovery deductions, which are allocated entirely to B. Assume (perhaps unrealistically) that both partners are unconditionally obligated to restore a deficit to their capital accounts upon a liquidation of the partnership. A) Assume that B is not required to restore a deficit in her capital account, but the partnership agreement includes a "qualified in come offset." If the partnership continues to operate the building, what is the result to A and B in year one, in year six? B) What results in both years under the facts of (d), above, if in addition B has contributed her promissory note for $100,000 to the partnership?C) What results under the facts in (e), above, if in year six the building has a $400,000 fair market value, and A and B, acting as partners, agree that they will borrow $200,000 on a recourse basis, using the building as security, and distribute the proceeds equally to them selves early in year seven? D) What result under the facts in (e), above, if in year six the value of the building is $300,000, and A and B, acting as partners, agree that when its value reaches $400,000 they will take out a $200,000 2 recourse mortgage and distribute the proceeds equally? E) Assume that B is not required to restore a deficit in her capital account and that the partnership agreement does not contain a qualified income offset." If the partnership continues to operate the building, what is the result to A and B in year one? In year six? F) What results in both years under the facts of (h), above, if in addition B has contributed her promissory note for $100,000 to the 8 partnership?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 14:00

Alex is a working professional and has managed to save a small amount of money from his earnings. he wants to invest in something that is customized to his risk appetite. which financial institution should he choose? a. hedge funds b. mutual funds c. life insurance companies d. credit unions e. pension funds

Answers: 1

Answer

Business, 21.06.2019 21:00

Jameson manages a well-known cell phone company. this company has been voted as having the best cell-phone service. consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. jameson knows that the company's product far surpasses that of the competition. one thing has been bothering him, though. in order to put so many resources into ensuring the best service, jameson has cut back on employees at the firm's customer call center. recently, consumers have begun complaining about long wait times when they call in with a problem or concern. although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. jameson does not understand why consumers are getting so upset. he believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "after all," he says, "they can't have it all. if i invest more in customer service, that means less investment on ensuring the quality of our product offering."refer to scenario. jameson has asked you, a marketing consultant, to give him advice. he cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. you suggest that jameson has a narrowly defined view of the company's product offering. you tell jameson that successful marketers should define their products as what they

Answers: 2

Answer

Business, 22.06.2019 02:00

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Answers: 2

Answer

Business, 22.06.2019 11:00

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Answers: 1

Answer

You know the right answer?

A and B contribute $100,000 upon formation of a limited partnership. A is a general partner and B is...

Questions