Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $274,400. The fair market value of the interest is $ 301,840. In a proportionate current distribution, the LLC distributes $54,880 cash and equipment with an adjusted basis of $137,200 and a fair market value of $205,800 to him on that date. How much is Franco's adjusted basis in the LLC interest after the distribution, and what is the amount of his basis in the equipment received? Franco's adjusted basis in the LLC interest: Sfill in the blank 1 Franco's basis in the equipment: Sfill in the blank 2
Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $274,400. The fair market value of the interest is $ 301,840. In a proportionate current distribution, the LLC distributes $54,880 cash and equipment with an adjusted basis of $137,200 and a fair market value of $205,800 to him on that date. How much is Franco's adjusted basis in the LLC interest after the distribution, and what is the amount of his basis in the equipment received? Franco's adjusted basis in the LLC interest: Sfill in the blank 1 Franco's basis in the equipment: Sfill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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am. 112.
Transcribed Image Text:Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $274,400. The fair market value of the interest is $
301,840. In a proportionate current distribution, the LLC distributes $54,880 cash and equipment with an adjusted basis of $137,200 and a fair market value of $205,800 to
him on that date. How much is Franco's adjusted basis in the LLC interest after the distribution, and what is the amount of his basis in the equipment received? Franco's
adjusted basis in the LLC interest: Sfill in the blank 1 Franco's basis in the equipment: $fill in the blank 2
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