Question
ABC, LLC partnership is owned by A (50%), B(25%) and C(25%). Land: Proceeds of 500,000; Basis of 300,000 Building: Proceeds of 100,000; Basis of 250,000;
ABC, LLC partnership is owned by A (50%), B(25%) and C(25%).
Land: Proceeds of 500,000; Basis of 300,000
Building: Proceeds of 100,000; Basis of 250,000; Depreciation of 125,000
Equipment: Proceeds of 60,000; Basis of 30,000; Depreciation of 20,000
A has no other 1231 activity outside of ABC, LLC. B has a 1231 gain from another source in the amount of $50,000. In the most previous year, B had an overall 1231 loss of $10,000. C has 1231 activity from other sources as follows: DEF, Ltd. 60,000 QRS, LLC (10,000).
What amount, if any, of ordinary income will ABC, LLC recognize?
Step by Step Solution
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Step: 1
To determine the amount of ordinary income that ABC LLC will recognize we need to calculate the gain ...
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615
