### Required InformationKevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:| | Fair Market Value ||-------------------|-------------------|| | Basis | Value || Kevan: | | || Cash | $15,000 | $15,000 || Land* | $120,000 | $440,000 || **Totals** | **$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.### Task**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.#### Albee, LLC**Tax Basis Balance Sheet**| Assets: | Tax Basis ||------------------|-------------------|| Cash | || Land | $120,000 || **Totals** | **$120,000** || Liabilities and Capital: | ||---------------------------|-----------------|| Mortgage debt | || Capital-Kevan | || Capital-Jerry | || Capital-Dave | || **Totals** | **$0** |

Albee, LLC Tax basis balance sheet Particulars Amount ($) Assets Cash 505000 Land 120000 Totals…

Answered: Required information Kevan, Jerry, and…

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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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.) b. What is Kevan’s tax basis in his LLC interest? Jerry Dave Kevan Gain or loss recognized
S2.
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! Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land cana Totals Liabilities and capital: Nonrecourse liabilities Tatsuki* Robert* Totals Tax basis $ Dave 0 Basis *Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable. Tatsuki $ 150,000 200,000 150,000 $ 500,000 b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest. Robert $ 100,000 200,000 200,000 $…
In Year 1 you invested $500,000 in exchange for a 40% partnership interest in ABC, LP. You later received a K-1 from ABC reporting $50,000 as your share of ABC’s Year 1 taxable income. During Year 1 you received a cash distribution from ABC of $75,000. You received a K-1 from ABC reporting $85,000 as your share of ABC’s Year 2 NOL. During Year 2 you received a cash distribution from ABC of $90,000. You received a K-1 from ABC reporting $110,000 as your share of ABC’s Year 3 taxable income. During Year 3 you received a cash distribution from ABC of $125,000. After all of the above, what is your adjusted tax basis in your partnership interest in ABC? $________
Required information [The following information applies to the questions displayed below.] Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: Assets: Cash Investments Land cama Totals Liabilities and capital: Nonrecourse liabilities Tatsuki* Robert* Totals Basis Gain or loss recognized $ 150,000 200,000 150,000 $ 500,000 as $ 100,000 200,000 200,000 $500,000 Fair Market Value $ 150,000 700,000 250,000 $1,100,000 *Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: Leave no answer blank. Enter zero if applicable. $ 100,000 500,000 500,000 $ 1,100,000 d. Compute and…
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $510,000 cash, and YZ contributed land ($510,000 FMV and $440,000 basis) in exchange for a 50 percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $255,000 from a local bank. The debt is recourse (unsecured by any specific partnership asset). Required: a. Compute each partner's initial basis in its partnership interest, assuming that both AB and YZ are general partners. b. Compute each partner's initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited partner. Complete this question by entering your answers in the tabs below. Required A Required B Compute each partner's initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited partner. AB's initial basis YZ's initial basis Amount
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 Tax basis Fair Market Value *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 $ 15,000 120,000 $ 15,000 440,000 $ 135,000 $ 455,000 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 $285,000 X Answer is complete but not entirely correct. Jerry $ 285,000 $ Dave 285,000
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