Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $197,000 at the end of the year, after accounting for the calendar year LLC's current operations. On that date, the LLC distributes $216,700 cash to Lola in a proportionate current distribution. What is the amount of any gain or loss Lola recognizes as a result of this distribution? What is her basis in the LLC interest? if an amount is zero, enter "0". She recognizes a $ ✔ 19700 gain 0 ✔✓ from this distribution. Her basis is reduced to $ ✔
Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $197,000 at the end of the year, after accounting for the calendar year LLC's current operations. On that date, the LLC distributes $216,700 cash to Lola in a proportionate current distribution. What is the amount of any gain or loss Lola recognizes as a result of this distribution? What is her basis in the LLC interest? if an amount is zero, enter "0". She recognizes a $ ✔ 19700 gain 0 ✔✓ from this distribution. Her basis is reduced to $ ✔
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you please show the working notes? Also please explicitly explain why the basis is reduced to zero in this problem? Thank you :)
Transcribed Image Text:6. EX.11-11.Algo (Algorithmic)
Exercise 11-11 (Algorithmic) (LO. 3)
Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $197,000 at the end of the year, after accounting for
the calendar year LLC's current operations. On that date, the LLC distributes $216,700 cash to Lola in a proportionate current distribution.
What is the amount of any gain or loss Lola recognizes as a result of this distribution? What is her basis in the LLC interest?
if an amount is zero, enter "0".
She recognizes a $ ✔
19700
gain
0
from this distribution. Her basis is reduced to $
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