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om is talking to his friend Bob, who has an interest in Freedom, LLC, about...

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Accounting

om is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC is $11,500. This includes his $2,800 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $18,500. If Tom bought Bob's LLC interest for $20,000, what would Tom's outside basis be in Freedom, LLC?

  • $11,500.

  • $17,200.

  • $20,000.

  • $22,800.

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