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Posted on Aug 30, 2024

Lance contributed investment property worth $692,500, purchased four years ago for $412,500 cash, to Cloud Peak LLC in exchange for an 80 percent profits and

Lance contributed investment property worth $692,500, purchased four years ago for $412,500 cash, to Cloud Peak LLC in exchange for an 80 percent profits and capital interest in the LLC. Cloud Peak owes $312,500 to its suppliers but has no other debts.

a. What is Lances tax basis in his LLC interest?

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