Question 1

Partnership income or loss and separately stated items are reported to the individual partners via Schedule K-1.

Accepted Answer

A) True 
 B)False

Question 2

Lacy contributes the following assets to a partnership for a 25% interest:   The land and the van have a basis to the partnership of:

Accepted Answer

A) Land $15,000; Van $15,000. 
B) Land $50,000; Van $15,000. 
C) Land $15,000; Van $10,000. 
D) Land $0; Van $0. 
A) Land $15,000; Van $15,000. 
B) Land $50,000; Van $15,000. 
C) Land $15,000; Van $10,000. 
D) Land $0; Van $0.

Question 3

Marty and Blake are equal partners in MB Partnership.The partnership reports the following items of income and expense:
   a.Which items are considered separately stated items? How will these items be reported to the partners? What form will be used?
b.Where on what forms)will these amounts be reported by the partners?

Accepted Answer

a. Separately stated items include: @#IMG-DLM& The

Question 4

Doug,Geoffrey,and Fredrick form a partnership and contribute the following assets:
   Geoffrey's building has a mortgage of $135,000 which the partnership assumes.
a.Do any of the partners recognize any gain? If so,how much and why?
b.What is each partner's basis in his or her partnership interest?
c.What is the basis to the partnership in each asset?
d.What are the holding periods to the partnership for each asset?
e.How would your answer change with respect to Geoffrey if his basis in the building was
$85,000?

Accepted Answer

a. None of the partners recognize any ga

Question 5

Parker,a 25% partner in Delta Partnership,has a basis of $25,000 in his partnership interest.Parker receives a cash distribution of $24,000 at year-end.What is Parker's recognized gain or loss?

Accepted Answer

A) $1,000. 
B) $25,000. 
C) $0. 
D) $24,000. 
A) $1,000. 
B) $25,000. 
C) $0. 
D) $24,000.

Question 6

Which of the following items decreases a partner's basis in his or her partnership interest?

Accepted Answer

A) A nondeductible expense that flows through from the partnership. 
B) A cash distribution from the partnership. 
C) A release from partnership liabilities. 
D) All of these. 
A) A nondeductible expense that flows through from the partnership. 
B) A cash distribution from the partnership. 
C) A release from partnership liabilities. 
D) All of these.

Question 7

Jeremy and Juan are equal partners in the JJ Partnership.Jeremy receives a guaranteed payment of
$120,000.In addition to the guaranteed payment,Jeremy withdraws $30,000 from the partnership.The partnership has $78,000 in ordinary income during the year.
a.How much income must Jeremy report from JJ partnership?
b.What is the effect on Jeremy's partnership basis?

Accepted Answer

a. @#IMG-DLM& b. Jeremy's Basis Effects

Question 8

All income and expense items of a partnership that may be treated differently at the partner level must be "separately stated."

Accepted Answer

A) True 
 B)False

Question 9

A partner had the following items reported on a partnership Schedule K-1:   The partner's self-employment income for the year equals:

Accepted Answer

A) $68,000. 
B) $28,000. 
C) $42,000. 
D) $37,000. 
A) $68,000. 
B) $28,000. 
C) $42,000. 
D) $37,000.

Question 10

A partner had the following items reported on a partnership Schedule K-1:   The partner's self-employment income for the year is:

Accepted Answer

A) $64,500. 
B) $48,500. 
C) $32,500. 
D) $26,000. 
A) $64,500. 
B) $48,500. 
C) $32,500. 
D) $26,000.

Question 11

How does a partner treat premiums on health insurance provided by the partnership?

Accepted Answer

A) As a separately stated item. 
B) As a guaranteed payment. 
C) As an ordinary income item reported on a W-2. 
D) As a capital gain item. 
A) As a separately stated item. 
B) As a guaranteed payment. 
C) As an ordinary income item reported on a W-2. 
D) As a capital gain item.

Question 12

Which of the following items increases a partner's basis in his or her partnership interest?

Accepted Answer

A) Tax-exempt income that flows through from the partnership. 
B) Ordinary income that flows through from the partnership. 
C) The basis of property contributed. 
D) All of these. 
A) Tax-exempt income that flows through from the partnership. 
B) Ordinary income that flows through from the partnership. 
C) The basis of property contributed. 
D) All of these.

Question 13

A pre-contribution gain occurs when a partner contributes appreciated property to a partnership and,within seven years,the partnership distributes the same property to another partner.

Accepted Answer

A) True 
 B)False

Question 14

The general rule regarding income and expense items of a partnership and their classification is:

Accepted Answer

A) All income and expense items of a partnership are treated as ordinary income/expense items. 
B) All income and expense items of a partnership are treated as capital income or losses. 
C) All income and expense items of a partnership that may be treated differently at the partner level must be "separately stated." 
D) All income and expense items of a partnership are treated as separately stated items. 
A) All income and expense items of a partnership are treated as ordinary income/expense items. 
B) All income and expense items of a partnership are treated as capital income or losses. 
C) All income and expense items of a partnership that may be treated differently at the partner level must be "separately stated." 
D) All income and expense items of a partnership are treated as separately stated items.

Question 15

Sabrina has a $12,000 basis in her S&B partnership interest.Sabrina receives a current cash distribution of $10,000 and equipment with a $5,000 basis FMV $6,000).What is Sabrina's basis in the equipment received?

Accepted Answer

A) $2,000. 
B) $5,000. 
C) $6,000. 
D) $0. 
A) $2,000. 
B) $5,000. 
C) $6,000. 
D) $0.

Question 16

Miguel contributes land to a partnership with a basis of $12,000 and a FMV of $18,000.How much gain will Miguel recognize?

Accepted Answer

A) $6,000. 
B) $18,000. 
C) $0. 
D) $12,000. 
A) $6,000. 
B) $18,000. 
C) $0. 
D) $12,000.

Question 17

Jose purchased a 30% partnership interest for $38,000 in June 2013.Jose's share of partnership income was $8,000 in 2013,$12,000 in 2014,$28,000 in 2015,and $6,000 in 2016.Jose made no additional contributions to,or withdrawals from,the partnership.On December 29,2016,Jose sold his partnership interest for $108,000.What is Jose's gain or loss on the sale of his partnership interest?

Accepted Answer

Jose would have a lo

Question 18

Rita has a beginning basis in a partnership of $43,000.Rita's share of income and expense from the partnership consists of the following amounts:
   a.What items are separately stated?
b.What is Rita's self-employment income?
c.Calculate Rita's partnership basis at the end of the year.

Accepted Answer

a. Guaranteed payments are bot

Question 19

In 2015,Angel contributes land to a partnership with a basis of $12,000 and a FMV of $22,000.In 2016,when the FMV of the land is $28,000,the partnership distributes the land to Shelia,another partner.What is the basis of the land to Shelia assuming she has a $40,000 basis in her partnership interest?

Accepted Answer

A) $28,000. 
B) $0. 
C) $12,000. 
D) $22,000. 
A) $28,000. 
B) $0. 
C) $12,000. 
D) $22,000.

Question 20

If only cash is contributed on the formation of a partnership,outside basis will equal inside basis.

Accepted Answer

A) True 
 B)False

Partnership income or loss and separately stated items are reported to the individual partners via Schedule K-1.

Lacy contributes the following assets to a partnership for a 25% interest: The land and the van have a basis to the partnership of:

Parker,a 25% partner in Delta Partnership,has a basis of $25,000 in his partnership interest.Parker receives a cash distribution of $24,000 at year-end.What is Parker's recognized gain or loss?

Which of the following items decreases a partner's basis in his or her partnership interest?

All income and expense items of a partnership that may be treated differently at the partner level must be "separately stated."

A partner had the following items reported on a partnership Schedule K-1: The partner's self-employment income for the year equals:

A partner had the following items reported on a partnership Schedule K-1: The partner's self-employment income for the year is:

How does a partner treat premiums on health insurance provided by the partnership?

Which of the following items increases a partner's basis in his or her partnership interest?

A pre-contribution gain occurs when a partner contributes appreciated property to a partnership and,within seven years,the partnership distributes the same property to another partner.

The general rule regarding income and expense items of a partnership and their classification is:

Sabrina has a $12,000 basis in her S&B partnership interest.Sabrina receives a current cash distribution of $10,000 and equipment with a $5,000 basis FMV $6,000).What is Sabrina's basis in the equipment received?

Miguel contributes land to a partnership with a basis of $12,000 and a FMV of $18,000.How much gain will Miguel recognize?

Rita has a beginning basis in a partnership of $43,000.Rita's share of income and expense from the partnership consists of the following amounts: a.What items are separately stated? b.What is Rita's self-employment income? c.Calculate Rita's partnership basis at the end of the year.

If only cash is contributed on the formation of a partnership,outside basis will equal inside basis.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Corporate Taxation

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Exam 14: Partnership Taxation

Partnership income or loss and separately stated items are reported to the individual partners via Schedule K-1.

Lacy contributes the following assets to a partnership for a 25% interest: The land and the van have a basis to the partnership of:

Parker,a 25% partner in Delta Partnership,has a basis of $25,000 in his partnership interest.Parker receives a cash distribution of $24,000 at year-end.What is Parker's recognized gain or loss?

Which of the following items decreases a partner's basis in his or her partnership interest?

All income and expense items of a partnership that may be treated differently at the partner level must be "separately stated."

A partner had the following items reported on a partnership Schedule K-1: The partner's self-employment income for the year equals:

A partner had the following items reported on a partnership Schedule K-1: The partner's self-employment income for the year is:

How does a partner treat premiums on health insurance provided by the partnership?

Which of the following items increases a partner's basis in his or her partnership interest?

A pre-contribution gain occurs when a partner contributes appreciated property to a partnership and,within seven years,the partnership distributes the same property to another partner.

The general rule regarding income and expense items of a partnership and their classification is:

Sabrina has a $12,000 basis in her S&B partnership interest.Sabrina receives a current cash distribution of $10,000 and equipment with a $5,000 basis FMV $6,000).What is Sabrina's basis in the equipment received?

Miguel contributes land to a partnership with a basis of $12,000 and a FMV of $18,000.How much gain will Miguel recognize?

Rita has a beginning basis in a partnership of $43,000.Rita's share of income and expense from the partnership consists of the following amounts: a.What items are separately stated? b.What is Rita's self-employment income? c.Calculate Rita's partnership basis at the end of the year.

If only cash is contributed on the formation of a partnership,outside basis will equal inside basis.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Corporate Taxation

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