Lance contributed investment property worth $500,000 purchased three years ago for $200,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and
Lance contributed investment property worth $500,000 purchased three years ago for $200,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and capital interest in the LLC. Cloud Peak owes $300,000 to its suppliers but has no other debts.
Assume Lance pays off $50,000 of the recourse debt with cash. What is the journal entry for this? What effect does it have on the partner's basis and why?
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Authors: Frank Wood, Alan Sangster
10th Edition
0273693107, 978-0273693109
