Sweeney originally contributed $278,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $166,800 and he withdrew $111,200 cash. The LLC's liabilities are $139,000, of which Sweeney's share is $34,750. The LLC has $69,500 of hot assets, of which Sweeney's share is $17,375. Sweeney sells his LLC interest to Jana for $366,960 cash, with Jana also assuming Sweeney's share of the LLC's liabilities.

How much is Sweeney's gain on the sale, and what is its character?

Sweeney's total gain on the sale is $_______________, of which $_______________recognized as ordinary income, with the remaining

$_______________recognized as a long-term capital gain.

41102020 CengageNOWvZ | Online teaching and learning resource from Cengage Learning Exercise 1119 (Algorithmic) (L0. 7) Sweeney originally contributed $273,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $166,800 and he withdrew $111,200 cash. The LLC's liabilities are $139,000, of which Sweeney's share is $34,750. The LLC has $69,500 of hot assets, of which Sweeney's share is $17,375. Sweeney sells his LLC interest to Jana for $366,960 cash, with Jana also assuming Sweeney's share of the LLC; liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is 3; X 308,245 , of which s X 123,710 recognized as ordinary income, with the remaining :5 X 184,535 recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? $ J 401,710 Feedback Check My Work A partner can sell or exchange all or part of a partnership interest. The transaction can be between the partner and a third party; in this case, it Is similar in concept to a sale of corporate stock. Or the transaction can be between the partner and the partnership, in which case it is similar in concept to a redemption of corporate stock by the entity. The transfer of a partnership interest produces different results from the transfer of corporate stock because both the entity and aggregate concepts apply to the partnership situation, whereas only the entity concept applies to a sale of stock