Question
Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $44,000 at the end of the year, after accounting
Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $44,000 at the end of the year, after accounting for the calendar year LLC's current operations. On that date, the LLC distributes $48,400 cash to Lola in a proportionate current distribution.
What is the amount of any gain or loss Lola recognizes as a result of this distribution? What is her basis in the LLC interest?
if an amount is zero, enter "0".
She recognizes a $fill in the blank 1 from this distribution. Her basis is reduced to $fill in the blank 3.
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
