Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 21-25 (Algorithmic) (LO. 15) Sweeney originally contributed $202,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney

image text in transcribed
Exercise 21-25 (Algorithmic) (LO. 15) Sweeney originally contributed $202,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $121,200 and he withdrew $80,800 cash. The LLC's liabilities are $101,000, of which Sweeney's share is $25,250, The LLC has $50,500 of hot assets, of which Sweeney's share is $12,625. Sweeney sells his LLC interest to Jana for $266,640 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is s 1, of which $ recognized as ordinary income, with the remaining recognized as a long-term capital gain How much is Jana's adjusted basis for her LLC interest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Life Audit Workbook Meant For More

Authors: Agnese Iskrova

1st Edition

1716274958, 978-1716274954

More Books

Students also viewed these Accounting questions

Question

Outline the employee's role in the succession management process.

Answered: 1 week ago