Return to question 1 1105 Required information Problem 20-42 (LO 20-2) (Algo) [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: Totale Fair Market Basis Value Maude: Cash $ 25,000 $ 25,000 Land 115.000 385,750 $ 140,000 5410.750 "Nonrecourse liability secured by the land equals $162,000 James, Harold, and Jenny each contributed $248,750 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) Return to questio 1 James, Harold, and Jenny each contributed $248,750 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) Part 1 of 5 Problem 20-42 Parta (Algo) 2 points a. How much gain or loss will Maude and the other members recognize? Answer is complete and correct. Maude James Harold Gain or loss recognized Jenny 0$ 0 0 Return to question Totals $ 140.000 $ 410,750 "Nonrecourse liability secured by the land equals $162,000 James, Harold, and Jenny each contributed $248,750 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) Problem 20-42 Part b (Algo) b. What is Maude's tax basis in her LLC interest? Tax basis Totals 45,000 $ 140,000 385, 750 $ 410, 750 "Nonrecourse liability secured by the land equals $162,000 James, Harold, and Jenny each contributed $248,750 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) Problem 20-42 Part c (Algo) c. What tax basis do James, Harold, and Jenny have in their LLC interests? James Harold Jenny Tax basis assets in exchange for a 25 percent capital and 5 Basis Fair Market Value Maude: Cash Land Totals $ 25,000 115,000 $ 140,000 $ 25,000 385, 750 $410,750 "Nonrecourse liability secured by the land equals $162,000 James, Harold, and Jenny each contributed $248,750 in cash for a 25 percent profits and capital interest (Leave no answer blank. Enter zero if applicable.) Problem 20-42 Part d (Algo) d. What is High Horizon's tax basis in its assets? Tax basis S Required information e. Prepare a tax basis balance sheet for High Horizon LLC showing the tax capital accounts for the members. (Enter any capital account with a debit balance as a negative amount.) 5 High Horizons, LLC Tax Basis Balance Sheet Tax Basis $ 0 Assets Cash Land Totals Liabilities and capital: Mortgage debt Capital-Maude Capital-James Capital-Harold Capital-Jenny Totals 0
