Question

Carr, an equal partner, sold his partnership interest to Dole, an outsider, for $154,000 cash on January 1 of the following year. In addition, Dole assumed Carr's share of the partnership's liability. What was the total amount realized by Carr on the sale of his partnership interest?

Answer 1

The total amount realized by Carr from the sale includes the cash amount of $154,000 plus any partnership liability assumed by Dole. The question does not provide the value of the assumed liability, which is necessary to calculate the exact total amount realized by Carr.

Step-by-step explanation:

The total amount realized by Carr on the sale of his partnership interest includes the cash received from Dole and Carr's share of the liability that Dole assumed. To calculate this total amount, we must add the cash received ($154,000) to the amount of partnership liability assumed by Dole. Unfortunately, the exact figure for the assumed liability is not provided in the question. If it were provided, you would simply add that amount to the $154,000 to find the total amount realized by Carr.