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

		Basis		Fair Market Value
Maude:
Cash	$	25,750		$	25,750
Land*		115,500			373,000
Totals	$	141,250		$	398,750

Nonrecourse debt secured by the land equals $177,500

James, Harold, and Jenny each contributed $221,250 in cash for a 25 percent profits and capital interest.(Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

a.What is Maudes tax basis in her LLC interest?

b.What tax basis do James, Harold, and Jenny have in their LLC interests?

c.What is High Horizons tax basis in its assets?

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

High Horizons, LLC
Tax Basis Balance Sheet
Tax Basis
Assets:
Cash
Land
Totals	$0
Liabilities and capital:
Mortgage debt
Capital-Maude
Capital-James
Capital-Harold
Capital-Jenny
Totals	$0