Question:current taxinterest isvalue ofFranco owns a 60% interest in the DuleraLLC. On December 31 of theyear, his basis in the LLC$128,000. The fair markettheinterest is $140,000. In a proportionatenonliquidating distribution, the LLC distrib-utes $30,000 cash and equipment with anadjusted basis of $5,000 and a fair marketvalue of $8,000 to him on that date.How much is Franco's adjusted basis in theLLC interest after the distribution and whatis the amount of his basis in the equipmentreceived?

Step 1: Reduction in Basis Due to Cash Distribution:Cash distributions reduce the basis in the LLC…

Answered: Question: current tax interest is value…

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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1. Blue Corporation distributes land and building having a $70,000 adjusted basis and a $200,000 FMV to its sole shareholder, Marina. Blue has current and accumulated E&P exceeding $200,000. The property is subject to a $120,000 mortgage, which Marina assumes. What is the amount of the taxable dividend received by Marina? Group of answer choices $80,000 $70,000 $0 $130,000
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1
Enercio contributes $123,200 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. This year, the LLC generates $98,560 of ordinary taxable income and has no separately stated income or expenses. Enercio withdrew $12,320 from the partnership during the year. If an amount is zero, enter "0". Enercio is taxed on what amount of ABC's income? X How much of the $12,320 withdraw will Enercio be taxed? 0
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