Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $217,400. The fair market value of the interest is $239,140. Dulera then distributes to Franco $43,480 cash and equipment with an adjusted basis of $108,700 and a fair market value of $163,050. a. Compute Franco's basis in Dulera after the distribution. b. Compute Franco's basis in the equipment he received from Dulera.

Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $217,400. The fair market value of the interest is $239,140. Dulera then distributes to Franco $43,480 cash and equipment with an adjusted basis of $108,700 and a fair market value of $163,050. a. Compute Franco's basis in Dulera after the distribution. b. Compute Franco's basis in the equipment he received from Dulera.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 19CE

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