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please answer it all. this is all apart of one question. Problem 21-46 (Algorithmic) (LO. 14) At the beginning of the tax year, Melodie's basis
please answer it all. this is all apart of one question.
Problem 21-46 (Algorithmic) (LO. 14) At the beginning of the tax year, Melodie's basis in the MIP LLC was $70,000, including her $45,500 share of the LLC's liabilities. At the end of the year, MIP distributed to Melodie cash of $10,500 and inventory (basis of $8,400, fair market value of $10,500 ). In addition, MIP repaid all of its liabilities by the end of the year. a. If this is a proportionate current distribution, what is the tax effect of the distribution to Melodie and MIP? After the distribution, what is Melodie's basis in the inventory and in her MIP interest? If this is a proportionate current distribution, the cash distribution plus relief of liabilities Melodie's basis to $ After the distribution of inventory, what is Melodie's basis in the inventory and in her MIP interest? Basis in inventory Basis in MIP $ Feedback Check My Work b. Would your answers to part (a) change if this had been a proportionate liquidating distribution? If this had been a proportionate liquidating distribution, then Melodie would have recognized a basis in the inventory would have been $Step by Step Solution
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