Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $15,000 $15,000 Land* 120,000 440,000 Totals $135,000 $455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) c. What tax basis do Jerry and Dave have in their LLC interests? Jerry Dave Tax basis
Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $15,000 $15,000 Land* 120,000 440,000 Totals $135,000 $455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) c. What tax basis do Jerry and Dave have in their LLC interests? Jerry Dave Tax basis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:
| Basis | Fair Market Value | ||||
| Kevan: | |||||
| Cash | $15,000 | $15,000 | |||
| Land* | 120,000 | 440,000 | |||
| Totals | $135,000 | $455,000 | |||
*Nonrecourse debt secured by the land equals $210,000
Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)
c. What tax basis do Jerry and Dave have in their LLC interests?
|
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