Problem 21-39 (LO. 3, 7, 8) Phoebe and Parker are equal members in Phoenix Investors LLC. They are real estate investors who formed the LLC several years ago with equal cash contributions. Phoenix then purchased a piece of land. On January 1 of the current year, to acquire a one-third interest in the entity, Reece contributed to the LLC some land she had held for investment. Reece purchased the land five years ago for $75,000; its fair market value at the contribution date was $90,000. No special allocation agreements were in effect before or after Reece was admitted to the LLC. Phoenix holds all land for investment. Immediately before Reece's property contribution, the balance sheet of Phoenix Investors LLC was as follows: Basis FMV Basis FMV Land $30,000 $180,000 Phoebe, capital $15,000 $90,000 90,000 Parker, capital 15,000 $30,000 $180,000 $30,000 $180,000 a. At the contribution date, what is Reece's basis in her interest in the LLC? c. On June 30 of the current year, the LLC sold the land contributed by Reece for $90,000. How much is the recognized gain or loss? How is it allocated among the LLC members? The recognized gain is $ and this gain is allocated entirely to the contributing LLC member (Reece) . Feedback Check My Work Partially correct d. On June 30 of the current year, the LLC sold the land contributed by Reece for $90,000. Complete the balance sheet reflecting the basis and fair market value for the LLC immediately after the land sale. No other transactions occurred during the year. Assets Basis FMV Partners' Capital Basis FMV Cash Interest, Phoebe h Land Interest, Parker h Interest, Reece h | Total ||