Lydia and Oliver wish to form a partnership to conduct a new business. They each contribute the following assets in exchange for equal interests in LO Partnership. Lydia's tax basis in the contributed equipment is $22,000 and Oliver's tax basis in the contributed equipment is $57,000. Lydia Oliver
Cash $50,000 $70,000
Business equipment (FMV)​50,000 30,000
a. Compute each individual's realized and recognized gain or loss on the formation of LO Partnership.
b. Compute each individual's tax basis in their half interest in LO Partnership.
c. Compute the partnership's tax basis in the equipment contributed by each individual partner.
Yes, the question is based on U. S. taxation.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.