Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

When High Horizon LLC was formed, Maude contributed the following assets in exchange for a $25$ percent capital and profits interest in the LLC:

Basis Fair Market Value

Maude:

Cash $ $32,250$ $ $32,250$

Land$*123,000393,250$

Totals $ $155,250$ $ $425,500$

$*$Nonrecourse liability secured by the land equals $$201,500$

Hiro, Harold, and Sofiya each contributed $$224,000$ in cash for a $25$ percent profits and capital interest.

Note: Leave no answer blank. Enter zero if applicable.

a$.$ How much gain or loss will Maude and the other members recognize?