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Please answer ALL of the boxes. This is from ONE QUESTION and needs to be answered together. IF YOU ARE GOING TO ONLY ANSWER ONE
Please answer ALL of the boxes. This is from ONE QUESTION and needs to be answered together. IF YOU ARE GOING TO ONLY ANSWER ONE BOX I WILL GIVE YOU A THUMBS DOWN.
Sweeney originally contributed $210,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $126,000 and he withdrew $84,000 cash. The LLC's liabilities are $105,000, of which Sweeney's share is $26,250. The LLC has $52,500 of hot assets, of which Sweeney's share is $13,125. Sweeney sells his LLC interest to Jana for $277,200 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $, of which $ recognized as ordinary income, with the remaining $ recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? $Step by Step Solution
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