Kenisha and Shawna form the equal KS LLC, with a cash contribution of $738,000 from Kenisha and a property contribution (adjusted basis of $774,900, fair market value of $738,000) from Shawna.

How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much?

Shawna has realized____of $, of which $is recognized.

b.What is Kenisha's tax basis in her LLC interest?

$

c.What is Shawna's tax basis in her LLC interest?

$

d.What tax basis does the LLC take in the property transferred by Shawna?

$

e.Are there more effective ways to structure the formation?