Exercise 21-21 (Algorithmic) (LO. 8) When Padgett Properties LLC was formed, Nova contributed land (value of $219,000 and basis of $54,750) and $109,500 cash, and Oscar contributed cash of $328,500. Both members received a 50% interest in LLC profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at $ b. What is Padgett's tax basis in the land? c. If Padgett sells the land several years later for $328,500, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $

Exercise 21-21 (Algorithmic) (LO. 8) When Padgett Properties LLC was formed, Nova contributed land (value of $219,000 and basis of $54,750) and $109,500 cash, and Oscar contributed cash of $328,500. Both members received a 50% interest in LLC profits and capital. a. How is the land recorded for § 704(b) book capital account purposes? For § 704(b) book capital account purposes, Padgett records the land at $ b. What is Padgett's tax basis in the land? c. If Padgett sells the land several years later for $328,500, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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