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Lance contributed investment property worth $620,000, purchased Five years ago for $287,500 cash, to Cloud Peak LLC in exchange for an 70 percent profits and capital interest in the LLC. Cloud Peak owes $482,500 to its suppliers but has no other debts.

3.

value: 1.00 points

Required information

a. What is Lances tax basis in his LLC interest?

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ProblemDifficulty: 1 EasyLearning Objective: 20-02 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.

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4.

value: 1.00 points

Required information

b. What is Lances holding period in his interest?

References

eBook & Resources

ProblemDifficulty: 1 EasyLearning Objective: 20-02 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.

Check my work

5.

value: 1.00 points

Required information

c. What is Cloud Peaks basis in the contributed property?

References

eBook & Resources

ProblemDifficulty: 1 EasyLearning Objective: 20-02 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.

Check my work

6.

value: 1.00 points

Required information

d. What is Cloud Peaks holding period in the contributed property?

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