Required information When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: Fair Market Value Basis Maude: Cash Land* $ 20,000 20,000 100,000 360,000 Totals $120,000 $380,000 Nonrecourse debt secured by the land equals $160,000 James, Harold, and Jenny each contributed $220,000 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) d. What is High Horizon's tax basis in its assets? Tax basis

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25
percent capital and profits interest in the LLC:
Fair
Market
Value
Basis
Maude:
Cash
Land*
$ 20,000 20,000
100,000 360,000
Totals
$120,000 $380,000
Nonrecourse debt secured by the land equals $160,000
James, Harold, and Jenny each contributed $220,000 in cash for a 25 percent profits and capital
interest. (Leave no answer blank. Enter zero if applicable.)
d. What is High Horizon's tax basis in its assets?
Tax basis
Transcribed Image Text:Required information When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: Fair Market Value Basis Maude: Cash Land* $ 20,000 20,000 100,000 360,000 Totals $120,000 $380,000 Nonrecourse debt secured by the land equals $160,000 James, Harold, and Jenny each contributed $220,000 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) d. What is High Horizon's tax basis in its assets? Tax basis
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