Title: ACC 455 Week 5 Learning Team Assignment Week Five Problem Set Sample content: Week Five Problem Set ACC/455 Corporate Taxation I The January payment to Javier is really a liquidating distribution. There are two kinds of payments in this deal. The 1st ten distributions of $10,000 cash signify payments for Javiers property interest in the partnership and therefore are liquidating distributions. The balance $20,000 cash payments in November and December surpass Javiers basis in the partnership and also have been decided with no consideration to partnership revenue. As a consequence, the partnership may subtract the distribution and Javier should realize the distribution as ordinary income. Javier doesnt acknowledge a profit on liquidation by using this retirement method and the partnership gets the advantage of a $20,000 usual deduction. Retirement Structure Tax Consequences Distributions Javier JKL Partnership Cash distribution got (10 payments of $10,000