Question: Advanced Tax Accounting. Please show all work.
1. CTI, LLC, Transit Advisors, Inc. and Maria Salas are partners in Global Distributors, LLC. CTI owns 45% and Transit Advisors owns 40% and Salas owns 15%. CTI uses a fiscal year ending March 31, Transit Advisors uses a fiscal year ending June 30 and Maria Salas is a calendar year taxpayer. What tests are applied to determine what Global Distributors, LLC's tax year should be? What rule must the LLC apply to determine its tax year? What year must Global Distributors use, please show your calculations.
2. Sandeep is a 50% partner in ABC Partnership. At the beginning of the tax year, Sandeep's outside basis was $50,000, including his share of partnership liabilities. During the current year, Sandeep reported net ordinary income of $150,000. ABC Partnership distributed $15,000 to each of the partners ($30,000) total. At the end of the year, Sandeep's share of partnership liabilities increase by $10,000. What is Sandeep's outside basis in the partnership interest at the end of the year? Please show your calculations and explain your response.
3. Batman and Robin form an equal partnership during the year. Batman contributes a Batmobile with an adjusted basis of $250,000 and FMV $300,000 subject to a nonrecourse liability of $300,000. Robin contributes cash of $300,000. As a result of these transactions, what is Batman's basis in the partnership?