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.
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 18CE
Related questions
Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F323c9976-6b7b-4414-aa82-41105edc66ec%2F1a405a70-4e8b-47a7-bd07-02c140bb8e7f%2Fb4p1rj_processed.png&w=3840&q=75)
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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