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Idalia contributed land with a $7,000 basis and a $14,000 fair value to a partnership two years ago. This year, the land is distributed to Wilfred, another partner in the partnership. Idalia and Wilfred each have a 50 percent capital and profits interest in the partnership. At the time of distribution, the land’s fair value was $12,000, Idalia outside basis was $24,000, and Wilfred’s outside basis was $30,000. What are Idalia’s and Wilfred’s outside bases after the distribution? (assume none of the precontribution gain has been previously recognized)

Note: use the following fact pattern for the next two questions.   Bonnie is a partner in a general partnership in which she has an outside basis of $22,000 at the end of the year (prior to any distributions). On December 31, Bonnie receives a proportionate nonliquidating distribution of $16,000 cash and property with a $13,000 fair value and a $9,000 basis to the partnership.   What is the amount and character of Bonnie’s gain or loss on the distribution?

At the beginning of this year, Tobias’s basis in his Pine, Inc. (an S corporation) stock was $27,000. Tobias had previously made a direct loan to Pine of $10,000. During the year, Pine reported an $80,000 ordinary business loss and no separately stated items. If Tobias is a 50 percent owner of Pine, how much of the ordinary loss may he deduct?

Owen owns all the stock of Spruce, an S corporation. At the beginning of 2024, Owen’s basis in his Spruce stock was $14,000. During 2024, Owen loaned $20,000 to the corporation and it reported a ($25,000) ordinary business loss and no separately stated items. In 2025, Spruce reported $8,000 of ordinary business income. What is Owen’s stock and debt basis at the end of 2025?

Note: use the following fact pattern for the next four questions.   Lisa and Richard wish to acquire Acacia Corp., a C corporation. As part of their discussions with Tobias, the sole shareholder of Acacia, they examined the business’ tax accounting balance sheet. The relevant information is summarized as follows:   Fair value Adjusted basis Assets: Cash $30,000 $30,000 Equipment $70,000 $10,000 Building1 $260,000 $140,000 Land1 $410,000 $180,000 Total $770,000 $360,000 Liabilities: Payables $20,000 $20,000 Mortgage1 $150,000 $150,000 Total $170,000 $170,000   1 Mortgage is attached to the building and the land.   Tobias’ basis in the Acacia stock is $400,000. Lisa and Richard offer to pay Tobias $900,000 for his company.   [question 1 of 4] How much gain or loss must Acacia recognize if the transaction is structured as a stock sale to Lisa and Richard?

Lisa and Richard wish to acquire Acacia Corp., a C corporation. As part of their discussions with Tobias, the sole shareholder of Acacia, they examined the business’ tax accounting balance sheet. The relevant information is summarized as follows:     Fair value Adjusted basis Assets:     Cash $30,000 $30,000 Equipment $70,000 $10,000 Building1 $260,000 $140,000 Land1 $410,000 $180,000 Total $770,000 $360,000       Liabilities:     Payables $20,000 $20,000 Mortgage1 $150,000 $150,000 Total $170,000 $170,000   1 Mortgage is attached to the building and the land.   Tobias’ basis in the Acacia stock is $400,000. Lisa and Richard offer to pay Tobias $900,000 for his company.   [question 4 of 4] How much gain or loss must Tobias recognize if the transaction is structured as a direct asset sale and Acacia distributes all its after-tax proceeds to Tobias in liquidation of his stock? (assume a 21 percent corporate tax rate)

Note: use the following fact pattern for the next two questions.   Melissa contributed land with a $5,000 basis and a $9,000 fair value to a partnership three years ago. This year, the land is distributed to Sean, another partner in the partnership. Melissa and Sean each have a 50 percent capital and profits interest in the partnership. At the time of distribution, the land’s fair value was $12,000. (assume none of the precontribution gain has been previously recognized)   How much gain must Melissa and Sean recognize?

You have 120 minutes to complete the exam. Choose the BEST answer for the multiple-choice questions.  The computational section questions should be worked on a separate sheet of paper and uploaded within 1 hour of completing the exam.  The formula webpage is accessed in the exam under “Guidelines” Formula Webpage: https://berger-acc-chemistry.mailchimpsites.com/general

You have 180 minutes to complete the exam. Choose the BEST answer for the multiple-choice questions.  The formula webpage is accessed in the exam under “Guidelines”.  This exam is 100% multiple choice; no work submission required (though scratch paper is still strongly encouraged during the exam). Formula Webpage: https://berger-acc-chemistry.mailchimpsites.com/general

Which of the following statements regarding adjustment of assistive gait devices is true?