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 theinterest is $140,000. In a proportionate nonliquidating distribution, the LLC distrib-utes $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 Francos adjusted basis in the LLC interest after the distribution and what is the amount of his basis in the equipment received?
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Financial Accounting Theory
Authors: Craig Deegan
2nd Edition
0077126734, 978-0077126735
