When Kevin and Marshall formed the equal KM LLC, the fair market values of their interests were each $100,000. Kevin contributed $60,000 cash, equipment with a basis of $0 and a fair market value of $10,000, and a small parcel of land in which he had a basis of $50,000 and that was valued at $30,000. Marshall contributed receivable that was valued at $100,000 and in which his basis was $0. Calculate Kevin and Marshall’s basis in the property.
When Kevin and Marshall formed the equal KM LLC, the fair market values of their interests were each $100,000. Kevin contributed $60,000 cash, equipment with a basis of $0 and a fair market value of $10,000, and a small parcel of land in which he had a basis of $50,000 and that was valued at $30,000. Marshall contributed receivable that was valued at $100,000 and in which his basis was $0. Calculate Kevin and Marshall’s basis in the property.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When Kevin and Marshall formed the equal KM LLC, the fair market
values of their interests were each $100,000. Kevin contributed $60,000
cash, equipment with a basis of $0 and a fair market value of $10,000, and
a small parcel of land in which he had a basis of $50,000 and that was
valued at $30,000. Marshall contributed receivable that was valued at
$100,000 and in which his basis was $0. Calculate Kevin and Marshall’s basis in the property.
DO NOT GIVE SOLUTION IN IMAGE FORMAT
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