Essay on Accounts: Balance Sheet and Dapper-dons Partnership

952 Words Feb 14th, 2013 4 Pages
TAX FORM/RETURN PREPARATION PROBLEM
C9-57 The Dapper-Dons Partnership (employer identification no. 89-3456798) was formed ten years ago as a general partnership to custom tailor men’s clothing. Dapper-Dons is located at 123 Flamingo Drive in Miami, Florida 33131. Bob Dapper (Social Security No.
654-32-1098) manages the business and has a 40% capital and profits interest. His address is 709 Brumby Way, Miami, Florida 33131. Jeremy Dons (Social Security No.
354-12-6531) owns the remaining 60% interest but is not active in the business. His address is 807 9th Avenue, North Miami, Florida 33134. The partnership values its inventory using the cost method and did not change the method used during the current year. The partnership uses
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Dapper-Dons acquired and placed in service $40,000 of rehabilitation expenditures for a certified historical property this year. The appropriate MACRS depreciation on the rehabilitation expenditures already is included in the MACRS depreciation total. d The partnership made all contributions in cash to qualifying charities. e The partnership purchased the AB stock as an investment two years ago on December 1 for $40,000 and sold it on
June 14 of the current year for $58,000. f The partnership purchased the CD stock as an investment on February 15 of the current year for $100,000 and sold it on August 1 for $73,925. g The partnership use the land as a parking lot for the business. The partnership purchased the land four years ago for
$30,000 and sold it on August 15 of the current year for $35,050.
$ 520,810
11,000 16,975
494,115
1,400
(146,000 (1,332,050
12,000
(20,000
ISBN: 0-536-35834-6
Prentice Hall's Federal Taxation 2007: Comprehensive, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer, eds. Published by Prentice Hall. Copyright ©
2007 by Pearson Education, Inc.
Partnership Formation and Operation ▼ Corporations 9-47
_ TABLE C9-2
Dapper-Dons Partnership Balance Sheet for January 1 and December 31 of the
Current Year (Problem C9-57)
Balance Balance
January 1 December 31
Assets:
Cash $ 10,000 $ 40,000
Accounts receivable 72,600

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