Kevan, Jerry, and Dave formed Albee LLC$.$ Jerry and Dave each contributed

$$245,000$ in cash. Kevan contributed the following assets:

"Nonrecourse liability secured by the land equals $$210,000.$

Each member received a one$-$third capital and profits interest in the LLC$.$

a$)$ How much gain or loss will Jerry, Dave, and Kevan recognize on the

contributions?

b$)$ What is Kevan's tax basis in his LLC interest?

c$)$ What tax basis do Jerry and Dave have in their LLC interests?

d$)$ What is Albee LLC$\text{'}$s tax basis in its assets?

e$)$ Following the format in Exhibit $20-2,$ prepare a tax basis balance sheet for Albee

LLC showing the tax capital accounts for the members. What is Kevan's share of

the LLC$\text{'}$s inside basis?

f$)$ If the lender holding the nonrecourse liability secured by Kevan's land required

Kevan to guarantee $\frac{1}{3}$ of the liability and Jerry to guarantee the remaining $\frac{2}{3}$ of the

liability when Albee LLC was formed, how much gain or loss will Kevan recognize?

g$)$ If the lender holding the nonrecourse liability secured by Kevan's land required

Kevan to guarantee $\frac{1}{3}$ of the liability and Jerry to guarantee the remaining $\frac{2}{3}$

of the liability when Albee LLC was formed, what are the members' tax bases in

their LLC interests?