Question
Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During the time Sweeney was a member of the LLC, his
Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During the time Sweeney was a member of the LLC, his share of the LLC's income was $90,000 and he withdrew $75,000 cash. The LLC's liabilities are $80,000, of which Sweeney's share is $20,000. Sweeney sells his LLC interest to Jana for $225,000 cash, with Jana assuming Sweeney's share of the LLC's liabilities.
How much is Sweeney's gain on the sale, and how much is Jana's adjusted basis for her LLC interest?
Sweeney's gain on the sale is? and Jana's adjusted basis for her LLC interest is?
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Survey of Accounting
Authors: Carl S Warren
6th edition
978-113318912, 1133189121, 978-1133189121
