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eBook

Item 58

Time Remaining 1 hour 8 minutes 7 seconds

01:08:07

Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC, is $6,000. This includes his $1,700 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $13,000. If Tom bought Bob's LLC interest for $9,000, what would Tom's outside basis be in Freedom, LLC?

Multiple Choice

• $6,000

• $7,300

• $9,000

• $10,700