Required informationKevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed thefollowing assets:Kevan:CashLand*TotalsTaxbasisFair MarketValue*Nonrecourse liability secured by the land equals $210,000.Each member received a one-third capital and profits interest in the LLC.Note: Leave no answer blank. Enter zero if applicable. Round to the nearest whole thousand.Basis$ 15,000120,000$ 15,000440,000$ 135,000 $ 455,000g. If the lender holding the nonrecourse liability secured by Kevan's land required Kevan to guarantee 1/3 of the liability and Jerry toguarantee the remaining 2/3 of the liability when Albee LLC was formed, what are the members' tax bases in their LLC interests?Kevan$285,000X Answer is complete but not entirely correct.Jerry$ 285,000 $Dave285,000

The company's having a limited liability status is its biggest benefit as the members and owners of…

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 Fair Market Value Basis $ 15,000 $ 15,000 120,000 440,000 $ 135,000 $ 455,000 *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. g. If the lender holding the nonrecourse liability secured by Kevan's land required Kevan to guarantee 1/3 of the liability and Jerry to guarantee the remaining 2/3 of the liability when Albee LLC was formed, what are the members' tax bases in their LLC interests?

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 Fair Market Value Basis $ 15,000 $ 15,000 120,000 440,000 $ 135,000 $ 455,000 *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. g. If the lender holding the nonrecourse liability secured by Kevan's land required Kevan to guarantee 1/3 of the liability and Jerry to guarantee the remaining 2/3 of the liability when Albee LLC was formed, what are the members' tax bases in their LLC interests?

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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