Carmello is a one-third partner in the CDW Partnership with equal inside and outside bases. On December 31, Carmello sells his interest to Conrad for $108,000 cash. CDW makes a §754 election and its balance sheet as of December 31 is as follows: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
What is the amount and sign (positive or negative) of Conrad's special basis adjustment? If CDW sells the capital asset next year for $297,600, what is the amount of gain Conrad will recognize because of the sale?

Question

Carmello is a one-third partner in the CDW Partnership with equal inside and outside bases. On December 31, Carmello sells his interest to Conrad for $108,000 cash. CDW makes a §754 election and its balance sheet as of December 31 is as follows: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
  What is the amount and sign (positive or negative) of Conrad's special basis adjustment? If CDW sells the capital asset next year for $297,600, what is the amount of gain Conrad will recognize because of the sale?

Quizplus · Accepted Answer

The Answer of Carmello is a one-third partner in the CDW Partnership with equal inside and outside bases. On December 31, Carmello sells his interest to Conrad for $108,000 cash. CDW makes a §754 election and its balance sheet as of December 31 is as follows: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
  What is the amount and sign (positive or negative) of Conrad's special basis adjustment? If CDW sells the capital asset next year for $297,600, what is the amount of gain Conrad will recognize because of the sale?

Carmello Is a One-Third Partner in the CDW Partnership with Equal