Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the LLC's capital and profits and a 30% interest in the LLC's losses. The asset has an adjusted tax basis to Jokan and the LLC of $90,000 and a fair market value and § 704(b) "book" basis on the contribution date of $162,000. The asset is encumbered by a nonrecourse note of $54,000
Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the LLC's capital and profits and a 30% interest in the LLC's losses. The asset has an adjusted tax basis to Jokan and the LLC of $90,000 and a fair market value and § 704(b) "book" basis on the contribution date of $162,000. The asset is encumbered by a nonrecourse note of $54,000
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 26CE
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT