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

Question
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

Image Transcription

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

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