Required information (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: Fair Market Value Basis Maude: Cash Land* Totals $ 25,750 $ 25,750 115,500 373,000 $141,250 $398,750 *Nonrecourse debt secured by the land equals $177,500 James, Harold, and Jenny each contributed $221,250 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) a. How much gain or loss will Maude and the other members recognize? Maude James Harold Jenny Gain or loss recognized Required information (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: Fair Market Value Basis Maude: Cash Land* Totals $ 25,750 $ 25,750 115,500 373,000 $141,250 $398,750 *Nonrecourse debt secured by the land equals $177,500 James, Harold, and Jenny each contributed $221,250 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) b. What is Maude's tax basis in her LLC interest? Tax basis Required information (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: Fair Market value Basis Maude: Cash Land Totals $ 25,750 $ 25,750 115,500 373,000 $141,250 $398,750 *Nonrecourse debt secured by the land equals $177,500 James, Harold, and Jenny each contributed $221,250 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) c. What tax basis do James, Harold, and Jenny have in their LLC interests? James Harold Jenny Tax basis Required information (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: Fair Market Value Basis Maude: Cash Land $ 25,750 $ 25,750 115,500 373,000 $141,250 $398,750 Totals *Nonrecourse debt secured by the land equals $177,500 James, Harold, and Jenny each contributed $221,250 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) d. What is High Horizon's tax basis in its assets? Tax basis Required information (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: Fair Market Value Basis Maude: Cash Land* Totals $ 25,750 $ 25,750 115,500 373,000 $141,250 $398,750 "Nonrecourse debt secured by the land equals $177,500 James, Harold, and Jenny each contributed $221,250 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) e. Prepare a tax basis balance sheet for the High Horizon LLC showing the tax capital accounts for the members. (Enter any capital account with a debit balance as a negative amount.) High Horizons, LLC Tax Basis Balance Sheet Tax Basis Assets: Cash Land Totals Liabilities and capital: Mortgage debt Capital-Maude Capital-James Capital-Harold Capital-Jenny Totals
