Question
Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair
Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna.
Answer all of the following:
a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much?
b. What is Kenisha's tax basis in her LLC interest? Section 704(b) book basis?
c. What is Shawna's tax basis in her LLC interest? Section 704(b) book basis?
d. What tax basis does the LLC take in the property transferred by Shawna?
Please show all calculations and explain your answers for all the questions. Some have two parts. I need all of these answered.
Thank you!
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
