Question
A. Connie recently provided legal services to the Winterhaven LLC and received a 10 percent interest in the LLC as compensation. Winterhaven currently has $50,000
A.
Connie recently provided legal services to the Winterhaven LLC and received a 10 percent interest in the LLC as compensation. Winterhaven currently has $50,000 of accounts payable and no other debt. The current fair market value of Winterhavens capital is $300,000. If Connie receives a 10 percent capital interest only, how much income must she report?
B.
Connie recently provided legal services to the Winterhaven LLC and received a 10 percent interest in the LLC as compensation. Winterhaven currently has $50,000 of accounts payable and no other debt. The current fair market value of Winterhavens capital is $300,000. If Connie receives a 10 percent profits interest only, how much income must she report?
C.
Last December 31, Ramon sold the 10 percent interest in the Del Sol Partnership that he had held for two years to Garrett for $390,000. Prior to selling his interest, Ramons basis in Del Sol was $200,000 which included a $105,000 share of nonrecourse debt allocated to him. What is Garretts tax basis in his partnership interest?
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
