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Loraine and Murray form Lorray, LLC. Loraine and Murray are equal partners (i.e., 50% each). Loraine contributes land with a tax basis to Loraine of

Loraine and Murray form Lorray, LLC. Loraine and Murray are equal partners (i.e., 50% each). Loraine contributes land with a tax basis to Loraine of $2,500 and a fair market value of $4,000. Murray contributes $4,000 cash. Lorray, LLC sells the land four years after the formation of the LLC for $5,000. How much tax gain is allocated to Loraine and how much tax gain is allocated to Murray upon the LLC's sale of the land?
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Question \#9. (4 points) Loraine and Murray form Lorray, LLC. Loraine and Murray are equal partners (i.e., 50% each). Loraine contributes land with a tax basis to Loraine of $2,500 and a fair market value of $4,000. Murray contributes $4,000 cash. Lorray, LLC sells the land four years after the formation of the LLC for $5,000. How much tax gain is allocated to Loraine and how much tax gain is allocated to Murray upon the LLC's sale of the land

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