Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
When High Horizon LLC was formed. Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: Fair Market Value Basis Maude: Cash Land Totals $ 30,758 5 30,750 105,820 377500 $135,750 $408,250 *Nonrecourse debt secured by the land equals $160,500 James, Harold, and Jenny each contributed $247750 in cash for a 25 percent profits and capital interest (Leave no answer blank. Enter zero if applicable.) Problem 20-42 Part-b b. What is Maude's tax basis in her LLC interest? Tax basis wnen Hign Horizon LLL was Tormea, Mauae contributed the following assets in exchange for a 25 percent capital ana profits interest in the LLC Fair Market Value Basis Maude: Cash Land Totals $ 30,750 $ 30,750 105,000 377,500 $135,750 $408,250 *Nonrecourse debt secured by the land equals $160,500 James, Harold, and Jenny each contributed $247,750 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.) Problem 20-42 Part-c c. What tax basis do James, Harold, and Jenny have in their LLC interests? James Harold Jenny Tax basis When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: Fair Market Value Basis Maude: Cash Lande $ 30,750 $ 30,750 195,000 377,500 $135,750 $408,250 Totals Nonrecourse debt secured by the land equals $160,500 James, Harold, and Jenny each contributed $247,750 in cash for a 25 percent profits and capital interest (Leave no answer blank. Enter zero if applicable.) Problem 20-42 Part-d d. What is High Horizon's tax basis in its assets? Tax basis e. Prepare a tax basis balance sheet for the High Horizon LLC showing the tax capital accounts for the members. (Enter any capital account with a debit balance as a negative amount.) High Horizons, LLC Tax Basis Balance Sheet Tax Basis Cash Land Totals Llabilities and capital Mortgage debt Capital-Maude Capital James Capital-Harold Capital-Jenny Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Factory Accounts

Authors: John Whitmore

1st Edition

0367494825, 9780367494827

More Books

Students also viewed these Accounting questions

Question

please dont use chat gpt AI 4 1 0 .

Answered: 1 week ago