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.

Question

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
Cash $20,000 $20,000
Land* 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.

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.

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