Question
On January 2 of the current year, Fenton and Myers form the FM LLC. Their contributions to the LLC are as follows: Adjusted Basis Fair
On January 2 of the current year, Fenton and Myers form the FM LLC. Their contributions to the LLC are as follows:
Adjusted Basis Fair Market Value
From Fenton:
Cash $ 50,000 $ 50,000
Accounts receivable 0 90,000
Inventory 25,000 60,000
From Myers:
Cash 200,000 200,000
Within 30 days of formation, FM collects the receivables and sells the inventory for $60,000 cash. How much income does FM recognize from these transactions, and what is its character?
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Cost Accounting Fundamentals Essentials Concepts And Examples
Authors: Steven M. Bragg
7th Edition
1642210846, 978-1642210842
