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When Thomas Properties LLC was formed, Candice contributed land (value of $200,000 and basis of...

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Accounting

When Thomas Properties LLC was formed, Candice contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both partners receive a 50% interest in partnership profits and capital.

a) How is the land recorded for 704(b) book capital account purposes?

b) What is Thomas Properties tax basis in the land?

c) If Thomas Properties sells the land several years later for $300,000, how much tax gain will Candice and Oscar report?

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