Ralph purchases an interest in the RS Partnership on January 1 of the current year for $100,000. The partners share economic risk of loss associated with recourse debt according to their loss percentage. The partnership uses the calendar year as its tax year and has $400,000 in recourse liabilities when Ralph acquires his interest. His distributive share of partnership items for the year is below:

Ordinary Income (excluding items listed below): 30,000.
Long-term capital gains: 10,000.
Municipal bond interest income: 8,000.
Charitable Contributions: 1,000.
Interest expense related to municipal bond investment: 2,000.

TP reports the following liabilities on December 31:

Recourse Debt: 100,000 and Nonrecourse debt (not qualified real estate financing): 80,000.

What is Ralph's basis on Decemeber 31 if she has a 40% interest in profits and losses? TP is a general partnership. Tina has not guaranteed partnership debt nor has he made any other special agreements about partnership debt.

What is credit and debit in accounting

Balance sheet the assets of dallas & associates consist entirely of current assets and net plant and equipment. the firm has total assets of $2 5 million and net plant and equipment equals $2 million. it has notes payable of $150,000, long-term debt of $750,000, and total common equity of $1 5 million. the firm does have accounts payable and accruals on its balance sheet. the firm only finances with debt and common equity, so it has no preferred stock on its balance sheet. a. what is the company's total debt? b. what is the amount of total liabilities and equity that appears on the firm's balance sheet? c. what is the balance of current assets on the firm's balance sheet? d. what is the balance of current liabilities on the firm's balance sheet? e. what is the amount of accounts payable and accruals on its balance sheet? [hint: consider this as a single line item on the firm's balance sheet.] f. what is the firm's net working capital? g. what is the firm's net operating working capital? h. what is the explanation for the difference in your answers to parts f and g?

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest. extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of