Business, 24.06.2021 17:30 ematthews1058

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 Value
Maude:
Cash$21,500 $21,500
Land* 145,500 405,250
Totals$167,000 $426,750
*Nonrecourse debt secured by the land equals $206,000
James, Harold, and Jenny each contributed $220,750 in cash for a 25 percent profits and capital interest.
a. How much gain or loss will Maude and the other members recognize?
Gain or Loss Recognized
Maude
James
Harold
Jenny
b. What is Maudeâ€™s tax basis in her LLC interest?
c. What tax basis do James, Harold, and Jenny have in their LLC interests?
JamesHaroldJenny
Tax basis$$$
d. What is High Horizonâ€™s tax basis in its assets?
e. Prepare a tax basis balance sheet for the High Horizon LLC showing the tax capital accounts for the members
High Horizons, LLC
Tax Basis Balance Sheet
Tax Basis
Assets:
Cash
Land
Totals
Liabilities and capital:
Mortgage debt$
Capital-Maude
Capital-James
Capital-Harold
Capital-Jenny
Totals$

Answers: 3

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