Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kolo Ren is a 40% member in Praetorian LLC. At the beginning of the tax year. ylo Ren's capital account showed a balance of $120,000.

image text in transcribed

Kolo Ren is a 40% member in Praetorian LLC. At the beginning of the tax year. ylo Ren's capital account showed a balance of $120,000. In this case, his capital account equals his basis in the LLC interest excluding his share of the LLC's debts. His K-1 showed recourse debt (guaranteed by Kylo Ren) and nonrecourse debt of S10,000 and $20,000, respectively. During the current year, Praetorian reported net ordinary income of $200,000 and non-deductible expenses of $2,000. There were no distributions during the year. At the end of the year, Kyle Ren's share of recourse (guaranteed) and nonrecourse liabilities were $20,000 and $30,000, respectively. How much is Kylo Ren's basis in the LLC interest at the end of the year

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

Students also viewed these Accounting questions

Question

7. List behaviors to improve effective leadership in meetings

Answered: 1 week ago

Question

6. Explain the six-step group decision process

Answered: 1 week ago