Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kevan, jerry, and dave formed albee llc. jerry and

Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash....

50.1K

Verified Solution

Question

Accounting

Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:
Basis Fair Market Value
Kevan:
Cash $ 15,000 $ 15,000
Land*120,000440,000
Totals $ 135,000 $ 455,000
*Nonrecourse liability secured by the land equals $210,000.
Each member received a one-third capital and profits interest in the LLC.
Note: Leave no answer blank. Enter zero if applicable. Round to the nearest whole thousand.
f. If the lender holding the nonrecourse liability secured by Kevan's land required Kevan to guarantee 1/3 of the liability and Jerry to guarantee the remaining 2/3 of the liability when Albee LLC was formed, how much gain or loss will Kevan recognize?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

For a company that produces respirators, the Cobb-Douglas function is given f(x,y)=120x^(1⁄3) y^(2⁄3) Where \"x\" represents labor...

Biology
1.2K views

Based on the photo and your own knowledge, this scene from 1918 best illustratesthe fear...

Physics
1.2K views

32 A pendulum bob of mass 30 mg carrying a ch of 20 10 C...

Basic Math
1.2K views

Consider f x 2x 7 fog 3 gof 3 fog x go f x g...

Basic Math
1.2K views

9 To refine aluminum from its ore aluminum oxide is electrolyzed to form aluminum and...

Calculus
1.2K views

Find an exponential function of the form P(t)= Pon^1/T that models the situation, and then...

Algebra
1.2K views

a If 80 000 is invested at 8 compounded annually find the future value in...

Accounting
1.2K views

Suppose that Reebok's inventory records show the following data for the month of September:...

Accounting
1.2K views

Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following...

Accounting
1.2K views

What forecasting technique makes use of written surveys or telephone interviews

Accounting
1.2K views

How would the wages of the employee who issues materials from the factory storeroom classified?

Accounting
1.2K views

Company Z acquires 75% of Company Q for $3,000,000 which includes $200,000 of goodwill. What...