If the initial basis is 13000 and the company distributes 4000 cash that brings the basis down to 9000. Then there is a distribution of land with a FMV of 17000, however, the investors basis cannot be negative so shouldnt the basis in the land be 9000?
Is this part of the new testing material starting January 1 2019?
The explanation points out two correct answers for this question - is this simply a case of one choice being "more correct" than the other?
"No, unless the client provides consent" is also a correct answer here.
Why Thomas's income didn't get reduce with his share of charity of $4800?
His portion of income is 40% of 212,000=84800 + 60,000 guaranteed payment =144,800
Then where is the treatment of 40% of 12000 charity for his portion?
Lease obligation = lease liability.
Lease liability = 48. Lease obligation = 48.
Interest payable = 4.8.
Total liability=lease liability+interest payable= 52.8.
Question asks for lease obligation, not total liability.
Where am I going wrong?