Business, 16.03.2020 20:26 emily9656

Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2013. Sam's uncle purchased the land in 1986 for $30,000. The land was worth $100,000 when Sam's uncle died. The fair market value of the land was $200,000 at the date it was contributed to the partnership.

Drew has significant experience developing real estate. After the LLC is formed, he will prepare a plan for developing the property and secure zoning approvals for the LLC. Drew would normall bill a third party $50,000 for these efforts. Drew will also contributed $150,000 cash in exchange for his 50% interest in the LLC. The value of his 50% interest is $200,000.

How much gain or income will Sam recognize on his contribution of the land to the LLC? What is the character of any gain or income recognized?

What basis will Sam take in his LLC interest

How much gain or income will Drew recognize on the formation of the LLC? What is the character of any gain or income recognized?

What basis will Drew take in his LLC interest?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 13:40

After much consideration, you have chosen cancun over ft. lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision? a. the marginal cost of going to cancun decreases.b. the marginal cost of going to ft. lauderdale decreases.c. the marginal benefit of going to cancun increases.d. the marginal benefit of going to ft. lauderdale decreases.

Answers: 2

Answer

Business, 22.06.2019 16:30

Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income

Answers: 1

Answer

Business, 22.06.2019 19:40

Lauer corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: date transaction number of units cost per unit 1/1 beginning inventory 210 $ 910 5/5 purchase 310 $ 1,010 8/10 purchase 410 $ 1,110 10/15 purchase 255 $ 1,160 during the year, lauer sold 1,025 laptop computers. what was cost of goods sold using the lifo cost flow assumption?

Answers: 1

Answer

Business, 23.06.2019 03:20

Bathlinks corporation has a debt to assets ratio of 73%. this tells the user of bathlinks’s financial statements that a. bathlinks is getting a 27% return on its assets. b. there is a risk that bathlinks cannot pay its debts as they come due. c. 73% of the assets are financed by the stockholders. d. based on this measure, the user should not invest in bathlinks.

Answers: 3

Answer

You know the right answer?

Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land...

Questions