Question
Lance contributed investment property worth $660,000, purchased Three years ago for $337,500 cash, to Cloud Peak LLC in exchange for an 90 percent profits and
Lance contributed investment property worth $660,000, purchased Three years ago for $337,500 cash, to Cloud Peak LLC in exchange for an 90 percent profits and capital interest in the LLC. Cloud Peak owes $452,500 to its suppliers but has no other debts.
a. What is Lances tax basis in his LLC interest?
b. What is Lances holding period in his interest?
c. What is Cloud Peaks basis in the contributed property?
d. What is Cloud Peaks holding period in the contributed property?
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Cost Accounting An Introduction To Cost Management Systems
Authors: Philip Jagolinzer
1st Edition
0324015828, 978-0324015829
