Chap015 With Answer

ACCTG311 1. A partnership is a(n): I. accounting entity. II. taxable entity. A. I only B. II only C. Neither I nor II D. Both I and II 2. A partners tax basis in a partnership is co!prised o" #hich o" the "ollo#ing ite!s$ I. %he partners tax basis o" assets contributed to the partnership. II. %he a!ount o" the partners liabilities assu!ed by the other partners. III. %he partners share o" other partners liabilities assu!ed by the partnership. A. I plus II !inus III B. I plus II plus III C. I !inus II plus III D. I !inus II !inus III &ones and '!ith "or!ed a partnership #ith each partner contributing the "ollo#ing ite!s:

Assu!e that "or tax purposes &ones and '!ith ag ree to share eually in the liabilities assu!ed by the &ones and '!ith partnership. . *e"er to the abo+e in"or!ation. ,hat is each partners tax basis in the &ones and '!ith partnership$ -. *e"er to the abo+e in"or!ation. ,hat is the balance in each partners capital account " or "inancial accounting purposes$ . /ri""in and *hodes "or!ed a partnership on &anuary 10 2. /ri""in contributed cash o" 3120 and *hodes contributed land #ith a "air +alue o" 3140. %he partnership assu!ed the !ortgage on the land #hich a!ounted to 3-0 on &anuary 1. *hodes originally paid 30 "or the land. 5n &uly 10 20 the partnership sold the land "or 310. Assu!ing /ri""in and *hodes share pro"its and losses eually0 ho# !uch o" the gain "ro! sale o" land should be credited to /ri""in "or "inancial accounting purposes$ 4. ,hich o" the "ollo#ing accounts could be "ound in the general ledger o" a partnership$

6. ,hich o" the "ollo#ing accounts could be "ound in the 78 partnerships general ledger$ I. Due "ro! 7 II. 70 Dra#ing III. 9oan 7ayable to 8 A. I0 II B. I0 III C. II0 III D. I0 II0 and III . *D "or!ed a partnership on ;ebruary 10 2. * contributed cash o" 3100 #hile D contributed in+entory #ith a "air +alue o" 3120. Due to *s expertise in selling0 D agreed that * should ha+e 4 percent o" the total capital o" the partnership. * and D agreed to recogni