Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the LLC's capital and profits and a 30% interest in the LLC's losses. The asset has an adjusted tax basis to Jokan and the LLC of $177,500 and a fair market value and § 704(b) "book" basis on the contribution date of $319,500. The asset is encumbered by a nonrecourse note of $106,500 that has not been guaranteed by any of the LLC members. How much of the nonrecourse debt is allocated to Jokan? $____________ What is the amount of Jokan's basis in the LLC interest following the contribution? $_________
Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the LLC's capital and profits and a 30% interest in the LLC's losses. The asset has an adjusted tax basis to Jokan and the LLC of $177,500 and a fair market value and § 704(b) "book" basis on the contribution date of $319,500. The asset is encumbered by a nonrecourse note of $106,500 that has not been guaranteed by any of the LLC members. How much of the nonrecourse debt is allocated to Jokan? $____________ What is the amount of Jokan's basis in the LLC interest following the contribution? $_________
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 26CE
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Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the LLC's capital and profits and a 30% interest in the LLC's losses. The asset has an adjusted tax basis to Jokan and the LLC of $177,500 and a fair market value and § 704(b) "book" basis on the contribution date of $319,500. The asset is encumbered by a nonrecourse note of $106,500 that has not been guaranteed by any of the LLC members.
How much of the nonrecourse debt is allocated to Jokan?
$____________
What is the amount of Jokan's basis in the LLC interest following the contribution?
$_________
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