Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $52,000 in cash and $52,000 worth of equipment. Frank's adjusted basis in the equipment was $37,000. Bob contributed $52,000 in cash and $52,000 worth of land. Bob's adjusted basis in the land was $28,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $60,000. How much gain (loss) related to this transaction will Bob report on his X4 return? $8,000 $12,000 $28,000 $36,000
Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $52,000 in cash and $52,000 worth of equipment. Frank's adjusted basis in the equipment was $37,000. Bob contributed $52,000 in cash and $52,000 worth of land. Bob's adjusted basis in the land was $28,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $60,000. How much gain (loss) related to this transaction will Bob report on his X4 return? $8,000 $12,000 $28,000 $36,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $52,000 in cash and $52,000 worth of equipment. Frank's adjusted basis in the equipment was $37,000. Bob contributed $52,000 in cash and $52,000 worth of land. Bob's adjusted basis in the land was $28,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $60,000. How much gain (loss) related to this transaction will Bob report on his X4 return?
$8,000
$12,000
$28,000
$36,000
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