Problem 10-26 (Algorithmic) (LO. 3, 17)

Kenisha and Shawna form the equal KS LLC, with a cash contribution of $908,000 from Kenisha and a property contribution (adjusted basis of $953,400, fair market value of $908,000) from Shawna.

If an amount is zero, enter "0".

a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much? Shawna has realized loss of $fill in the blank ____, of which $fill in the blank ____ is recognized.

b. What is Kenisha's tax basis in her LLC interest? $fill in the blank 570fe2f93033021_1 Section 704(b) book basis? $fill in the blank 570fe2f93033021_2

c. What is Shawna's tax basis in her LLC interest? $fill in the blank 570fe2f93033021_3 Section 704(b) book basis? $fill in the blank ____

d. What tax basis does the LLC take in the property transferred by Shawna? $fill in the blank ____