Intro
The worksheets that follow provide pro forma workpapers to help you solve the assigned
homework problem. It organizes your solution in a manner that is consistent with the analytical
methods that we discuss in class and allow you to focus on the technical issues, rather than
workpaper techniques and computer skills.
However, you should continuously analyze the organization of the solution and the answers that
you receive, as you work the problems. That is the only way that you will learn the skills and
techniques that you will need for your long-term success. You should also refrain from checking the
correct answers until after you have completed your solution.
Click on the appropriate tab below to move to the worksheet for the homework problem that you
want to work on.
Once you have completed the assignment, save the file to your computer, then send it as an
email attachment to ACCT@rrtidd.com. Make sure that you put the following description in the
email's Subject line, including the spaces:
570 Homework 07
NOTE: Cells with red dots in them contain notes that provide additional information about the cell
contents. Double click on those cells to read the notes. Also, you need enter information only in the
cells that are highlighted in bright yellow.
Page 1
Intro
the analytical
the answers that
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from checking the
problem that you
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Page 2
8d26a539-002a-4e71-89ee-9fbda5026552.xlsx
Problem 21-43
Part a
Non-
Separately Separately
Per Book stated stated
Sales revenue $ 130,000
Cost of sales (45,000)
Distribution to Rob (10,000)
Depreciation expense (12,000)
Utilities expense (15,000)
Rent expense (16,000)
Dividend income 4,000
Payment to Mount Vernon Hospital (8,000)
$ 28,000 $ - $ -
Check Figure $ 42,000
Parts b. & c.
Bob Rob
Beginning Basis $ 14,000 $ 9,000
Allocation of :
Non-Separately Stated Items
Separately Stated Items
Partner Draws
Ending Basis $ 14,000 $ 9,000
Items Reported on Income Tax Return
Non-Separately Stated Items
Separately Stated Items
Other
8d26a539-002a-4e71-89ee-9fbda5026552.xlsx
Problem 21-45
Part a
Celeste Ernestine Total
Basis in Contributed Assets $ -
Debt Relief (assumed by partnership) -
Allocation of Nonrecourse Debt -
Beginning Basis (equity and debt) $ - $ - $ -
Part b
Non-
Separately Separately
Per Book stated stated
Sales revenue $ 350,000
Operating expenses, etc. (190,000)
Qualified dividend income 6,000
Interest income, exempt 2,000
Charitable contributions (1,000)
Distribution to Celeste (20,000)
Distribution to Ernestine (10,000)
$ 137,000 $ - $ -
Check Figure $ 7,000
Celeste Ernestine
Items Reported on Income Tax Return
Non-Separately Stated Items
Separately Stated Items
Other
Part c
Beginning basis $ -
Increase in share of recourse debt
Decrease in share of nonrecourse debt
Non-separately stated income
Separately stated income
Distribution to Celeste
Ending basis $ -
Check Figure $ 283,500
8d26a539-002a-4e71-89ee-9fbda5026552.xlsx
Check
Figures
$ 300,000
8d26a539-002a-4e71-89ee-9fbda5026552.xlsx
Problem 21-60
Part a Check Figures
Realized Gain or Loss
FMV realized on distribution
Basis in property given up
Gain realized $ 100,000
Recognized Gain or Loss
Gain realized $ -
-Gain not recognized
Gain recognized
Part b
Realized Gain or Loss
FMV realized on distribution
Basis in property given up
Gain realized $ 120,000
Recognized Gain or Loss
Basis in partnership interest
Cash realized on exchange
Gain recognized $ -
Part c
Basis in Property Received
Basis in partnership interest, before
distribution
Basis allocated to cash received
Basis for allocation to non-cash
assets
Basis allocated to A/R
Basis allocated to land
Basis in partnership interest, after
distribution $ -
Hypothetical Sale of Assets Received A/R Land Total
Sales price (=FMV at distribution) $ 80,000 $ 60,000 $ 140,000
Basis allocated to assets 0
Gain Recognized on Sale $ 140,000