[The following information applies to the questions displayed below.]When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25percent capital and profits interest in the LLC:Fair MarketValueBasisMaude:CashLand*Totals$ 39,250118,000$ 157,250$ 39,250431,500$ 470,750Nonrecourse liability secured by the land equals $163,500Hiro, Harold, and Sofiya each contributed $307,250 in cash for a 25 percent profits and capital interest.Note: Leave no answer blank. Enter zero if applicable.Problem 20-42 Part b (Algo)b. What is Maude's tax basis in her LLC interest?

The Maude's Tax Basis in her LLC interest is as follows:Formula:

Answered: [The following information applies to…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 45P

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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
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 $120,000 $380,000 Totals 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.) c. What tax basis do James, Harold, and Jenny have in their LLC interests? James Harold Jenny
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.) b. What is Maude's tax basis in her LLC interest? Tax basis
When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC:Basis Fair Market ValueCash $20,000 $20,000Land* 100,000 360,000Totals $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.Following the format in Exhibit 20-2, prepare a tax basis balance sheet for High Horizon LLC showing the tax capital accounts for the members.
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 Basis Fair Market Value $ 15,000 120,000 $ 15,000 440,000 $ 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. f. 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, how much gain or loss will Kevan recognize? X Answer is complete but not entirely correct. Gain or loss recognized $ 0X
need help understanding how to get part c.
Required Information (The following information applies to the questions displayed below.) Asron, Deonne, snd Keon formed the Blue Bell General Portnership et the beginning of the current yeor. Asron and Deanne each contributed $112,000 end Keon transferred en scre of undeveloped lend to the partnership. The land hod a tax basis of $68,000 and was apprsised st $180,000. The land was olso encumbered with e $68,000 nonrecourse mortgoge for which no one was personally liable. All three pertners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6.600 principal payment on the mortgage. For the first yesr of operations, the partnership records disclosed the following information: Sales revenue $ 488, eee Cost of goods sold Operating expenses Long-tern capital gains 51211 gains Charitable contributions 468, 020 43, 020 1, 58e 6ee Municipal bond interest Salary paid as a guaranteed paynent to Dcanne (not included in expenses) 3,0e0 a. Compute the…
Taxation thru business entities
Alpesh
Required information [The following information applies to the questions displayed below.] Mikaere's basis in the Jimsoo Partnership is $59,500. In a proportionate liquidating distribution, Mikaere receives cash of $8,300 and two capital assets: (1) Land A with a fair market value of $22,600 and a basis to Jimsoo of $17,950, and (2) Land B with a fair market value of $10,975 and a basis to Jimsoo of $17,950. Jimsoo has no liabilities. Required: c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to Mikaere (amount and character of gain or loss)? c2. What is Mikaere's basis in distributed assets? Complete this question by entering your answers in the tabs below. Required C1 Required C2 What is Mikaere's basis in distributed assets? Basis Cash Land 1 $ 8,300 Land 2
[The following information applies to the questions displayed below.]Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and adjusted bases: FMV Adjusted Basis Inventory $ 68,000 $ 34,000 Building 510,000 340,000 Land 782,000 1,020,000 Total $ 1,360,000 $ 1,394,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation’s stock received in the exchange was $1,260,000. The transaction met the requirements to be tax-deferred under §351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation? C. What is Zhang’s tax basis in the…
What is the stock basis for Harold in the following: Harold transfers the following to a newly formed corporation: Land (basis of $50,000 and FMV of $100,000) Building (basis of $50,000 and FMV of $400,000) Accounts payable of $10,000 (for business supplies) Notes Payable 1 for building improvements of $185,000 Oa Zero (original basis plus gain recognized less liabilities transferred) Ob s05,000 the gain recognized Oc $5,000 (the gain recognized less original basin) Od $100,000 ($50 - 150) O. 1S05,000) (8100,000 basis less 8195,000 gain)

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