When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC:

*Nonrecourse liability secured by the land equals $167,500

Hiro, Harold, and Sofiya each contributed $245,750 in cash for a 25 percent profits and capital interest.

Note: Leave no answer blank. Enter zero if applicable.

a. How much gain or loss will Maude and the other members recognize?

b. What is Maude's tax basis in her LLC interest?

c. What tax basis do Hiro, Harold, and Sofiya have in their LLC interests?

d. What is High Horizon's tax basis in its assets?

e. Prepare a tax basis balance sheet for High Horizon LLC showing the tax capital accounts for the members.

\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ High Horizons, LLC } \\ \hline \multicolumn{1}{|c|}{ Tax Basis Balance Sheet } \\ \hline Assets: & Tax Basis \\ \hline Cash & \\ \hline Land & \\ \hline Totals & \\ \hline Liabilities and capital: & \\ \hline Mortgage debt & \\ \hline Capital-Maude & \\ \hline Capital-Hiro & \\ \hline Capital-Harold & \\ \hline Capital-Sofiya & \\ \hline Totals & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ High Horizons, LLC } \\ \hline \multicolumn{1}{|c|}{ Tax Basis Balance Sheet } \\ \hline Assets: & Tax Basis \\ \hline Cash & \\ \hline Land & \\ \hline Totals & \\ \hline Liabilities and capital: & \\ \hline Mortgage debt & \\ \hline Capital-Maude & \\ \hline Capital-Hiro & \\ \hline Capital-Harold & \\ \hline Capital-Sofiya & \\ \hline Totals & \\ \hline \end{tabular}