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avid received a one-third capital and profits interest in Avery LLC (which is valued at $20,000) for setting up the bookkeeping system for the business
avid received a one-third capital and profits interest in Avery LLC (which is valued at $20,000) for setting up the bookkeeping system for the business and contributing a point of sale machine that was worth $5,000 with an adjusted basis of $$4,000. What income must David report in regard to this transaction and what is his basis in the LLC after the transaction.
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