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arg i have a finance/accounting question (should be easy but my brain is making it hard)

Posted by tRuMaN (aka Truman) Nov 28 '11, 09:47

a coportion is the 1% general partner in a limited parnership.

on the corporations books, should its financial statements reflect the same capital account balance as the k1?

ie, if the k1 shows a negative capital account of $5000, should the corporation show a negative asset (loss on investment) and have negative $5,000 retained earnings (assuming nothing else ever happens in this corporation)?

Responses:

that's my understanding too -- nm - ceregon Nov 28, 10:06
It depends! - spamlet (iPhone) Nov 28, 10:06 4
- the corp is the general partner, so by definition, they have control. - tRuMaN Nov 28, 10:07 3
  - Good point. GAAP is not my strong point. - spamlet (iPhone) Nov 28, 10:09
  - also the partnership's only business is a low income house rental facility. -- nm - tRuMaN Nov 28, 10:08 1
    - There will be tons of difference. Depreciation, housing tax credit, etc.., - spamlet (iPhone) Nov 28, 10:10
Shouldn't *we* be asking *you*? -- nm - psilotum Nov 28, 10:03 1
- probably, but i havent been sleeping well recently, so its taking me a lot longer to work through questions like that. -- nm - tRuMaN Nov 28, 10:07

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arg i have a finance/accounting question (should be easy but my brain is making it hard)

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