When High Horizon LLC was formed, Maude contributed the following assets in exchange for a...
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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 $ 40,000 $ 40,000 Land* 144,000 419,500 Totals $ 184,000 $ 459,500 *Nonrecourse debt secured by the land equals $192,000 James, Harold, and Jenny each contributed $267,500 in cash for a 25 percent profits and capital interest. (Leave no answer blank. Enter zero if applicable.)
What is Maudes tax basis in her LLC interest?
What tax basis do James, Harold, and Jenny have in their LLC interests?
What is High Horizons tax basis in its assets?
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.)
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