LeBron, Dennis, and Susan formed the Bar T LLC at the beginning of the current year. All of its members have calendar year ends. LeBron and Dennis each contributed $200,000 and Susan transferred several acres of agricultural land she had purchased two years earlier to the LLC. The land had a tax basis of $50,000 and was appraised at $300,000. The land was also encumbered with a $100,000 nonrecourse mortgage (Le, qualified nonrecourse financing) for which no one was personally liable. The members plan to use the land and cash to begin a cattle-feeding operation. Susan will work full time operating the business, but LeBron and Dennis will devote less than two days per year to the operation. All three members agree to split profits and losses equally. At the end of the first year, Bar T had accumulated $40,000 of accounts payable Jointly guaranteed by LeBron and Dennis and had made a $9,000 principal payment on the mortgage. None of the members have passive income from other sources or business income from other sources. LeBron and Dennis are married, while Susan is single For the first year of operations, the partnership records disclosed the following information: Note: Do not round intermediate calculations. Round your final onswers to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign. Leove no answers blank. Enter zero if applicable. a. Compute the tax basis of each member's interest immediately ffter the formation of the LLC. b. When does each member's holding period for his or her LLC interest begin? c. What are Bar T's tax basis and holding period in its land? d. What is Bar T's required tax year-end? e. What overall methods of accounting were initially available to Bar T? Note: Select all that apply. LeBron, Dennis, and Susan formed the Bar T LLC at the beginning of the current year. All of its members have calendar year ends. LeBron and Dennis each contributed $200,000 and Susan transferred several acres of agricultural land she had purchased two years earlier to the LLC. The land had a tax basis of $50,000 and was appraised at $300,000. The land was also encumbered with a $100,000 nonrecourse mortgage (Le, qualified nonrecourse financing) for which no one was personally liable. The members plan to use the land and cash to begin a cattle-feeding operation. Susan will work full time operating the business, but LeBron and Dennis will devote less than two days per year to the operation. All three members agree to split profits and losses equally. At the end of the first year, Bar T had accumulated $40,000 of accounts payable Jointly guaranteed by LeBron and Dennis and had made a $9,000 principal payment on the mortgage. None of the members have passive income from other sources or business income from other sources. LeBron and Dennis are married, while Susan is single For the first year of operations, the partnership records disclosed the following information: Note: Do not round intermediate calculations. Round your final onswers to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign. Leove no answers blank. Enter zero if applicable. a. Compute the tax basis of each member's interest immediately ffter the formation of the LLC. b. When does each member's holding period for his or her LLC interest begin? c. What are Bar T's tax basis and holding period in its land? d. What is Bar T's required tax year-end? e. What overall methods of accounting were initially available to Bar T? Note: Select all that apply
