Question: Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000.

Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. In a proportionate non-liquidating distribution, the LLC distributes $30,000 cash and equipment with an adjusted basis of $5,000 and a fair market value of $8,000 to him on that date.

How much is Franco’s adjusted basis in the LLC interest after the distribution and what is the amount of his basis in the equipment received?

Step by Step Solution

★★★★★

3.40 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Francos adjusted basis is 93000 and the basis in the equipment ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

527-L-B-L-T-L (518).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

On December 31 of the current year, Palus Inc. issued $500,000 of 10-year, 11% bonds. The bond were dated December 31 of the same year. Interest on the bond is payable on June 30 and Dec 31 of each...

On December 31 of the current year, Kellan Company. reported the following: Total sales for the current year of $850,000, which included $75,000 in cash sales. Accounts receivable balance at Dec. 31...

In year 2007, Andrew contributes equipment with an adjusted basis of $20,000 and a FMV of $18,000 to Construction Limited Partnership (CLP) in return for a 3% limited partnership interest. Andrews...

I have about half of this assignment completed. It is due this evening. Let me know if you can complete it and send me an email about price. Nicholas Janzen 05/26/2017 Financial Reporting Dr. Dennis...

Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $263,000. The fair market value of the interest is $289,300. In a proportionate...

14-6. LO.4 Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. Dulera...

Franco owns a 6 0 % interest in the Dulera LLC . On December 3 1 of the current tax year, his basis in the LLC interest is $ 1 9 4 , 6 0 0 . The fair market value of the interest is $ 2 1 4 , 0 6 0 ....

Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. Dulera then...

6. L O.4, 5 Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. Dulera...

LO.4 Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. Dulera then...

How do marketers attempt to shape consumers' learning?

You are recruited by the founder of a start-up company to advise her on the optimal capital structure for her company. The sole project of the company will require an initial outlay (at date 0) of...

Presented below is selected information related to the financial instruments of Wildhorse Company at December 3 1 , 2 0 2 5 . This is Wildhorse Company's first year of operations. Wildhorse elects to...

Midcity Electrical Services Pty Ltd has the contract to deliver and install NBN equipment to customers of ATG Telecom, an Australian telecommunications company and internet service provider. Midcity...

Complete the following schedule for each case. Unless otherwise indicated, assume that the shareholders have ample basis in the stock investment. All taxpayers use a calendar tax year. Accumulated E...

Larry, the sole shareholder of Brown Corporation, sold his stock to Ed on July 30 for $270,000. Larrys basis in the stock was $200,000 at the beginning of the year. Brown had accumulated E & P of...

QUESTION 4 . 1 POINT Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 450 elementary school children and finds that 280 have a social...

For Bobby Company, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. What is the margin of safety in dollars

A hat company claims that the mean hat size for a male is at least 7.25. A random sample of 12 hat sizes has a mean of 7.15. At=0.01, =0.01,alpha equals , 0.01 , comma can you reject the company's...