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Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed t following assets: Kevan: Cash Land Totals Basis $ 15,000 120,000 $ 135,000 Fair Market Value $15,000 440,000 $455,000 "Nonrecourse liability secured by the land equals $210,000.

Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed t following assets: Kevan: Cash Land Totals Basis $ 15,000 120,000 $ 135,000 Fair Market Value $15,000 440,000 $455,000 "Nonrecourse liability secured by the land equals $210,000.

FINANCIAL ACCOUNTING
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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A 18.

Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Kevan: Cash Land Totals Basis $ 15,000 120,000 $ 135,000 "Nonrecourse liability secured by the land equals $210,000. Each member received a one-third capital and profits interest in the LLC. Note: Leave no answer blank. Enter zero if applicable. Round to the nearest whole thousand. Albee, LLC Tax Basis Balance Sheet Assets Cash Land Totals Liabilities and capital Mortgage debt Capital-Kevan Capital-Jerry Capital-Dave Totals Fair Market Value e. Prepare a tax basis balance sheet for Albee LLC showing the tax capital accounts for the members. What is Kevan's share of the LLC's inside basis? Note: Enter any capital account with a debit balance as a negative amount. $ 15,000 440,000 $455,000 Tax Basis
Transcribed Image Text:Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Kevan: Cash Land Totals Basis $ 15,000 120,000 $ 135,000 "Nonrecourse liability secured by the land equals $210,000. Each member received a one-third capital and profits interest in the LLC. Note: Leave no answer blank. Enter zero if applicable. Round to the nearest whole thousand. Albee, LLC Tax Basis Balance Sheet Assets Cash Land Totals Liabilities and capital Mortgage debt Capital-Kevan Capital-Jerry Capital-Dave Totals Fair Market Value e. Prepare a tax basis balance sheet for Albee LLC showing the tax capital accounts for the members. What is Kevan's share of the LLC's inside basis? Note: Enter any capital account with a debit balance as a negative amount. $ 15,000 440,000 $455,000 Tax Basis
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