Chapter 20, Problem 43P

a.

To determine

Compute the gain or loss that would be earned by the partners on the contribution.

b.

To determine

Calculate Partner K’s tax basis in LLC interest.

c.

To determine

Calculate tax basis of Partner J and Partner D in LLC interest.

d.

To determine

Determine the tax basis of the assets of LLC A.

e.

To determine

Prepare a tax basis balance sheet for LLC A.

f.

To determine

Calculate the gain or loss recognized by Partner K.

g.

To determine

Determine the tax bases in LLC interest if the non-recourse debt is distributed between Partner K and Partner J.