Ask Question
BusinessBusiness
20 August, 23:05

Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna.

a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much?

b. What is Kenisha's basis in her LLC interest?

c. What is Shawna's basis in her LLC interest?

d. What basis does the LLC take in the property transferred by Shawna?

e. Are there more effective ways to structure the formation? Explain.

+4
Answers (1)
  1. 20 August, 23:24
    0
    Answer and Explanation:

    . a.

    Shawna would not recognize any gain or loss because the partners contributed property to the partnership.

    b. Kenisha's basis in her LLC interest would be $360,000

    c. Shawna would have basis of $380,000 in her LLC interest.

    d. $380,000 of the property contribution is taken as a basis of Shawna in the property of LLC.

    e. The more effective way to structure the formation would be for Shawna to sell her land for the fair market value of $360,000 and contribute the money to the LLC. Therefore according to the LLC there is the same amount of basis for both Shawna and Kenisha. 37
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On July 1 of the current year, Bertram acquired a 25 percent interest in Sycamore Company, a partnership, by contributing property with an adjusted basis of $7,000 and a fair market value of $12,000.
Answers (1)
A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Units Unit Cost Beginning inventory on January 1 320 3.
Answers (1)
Price is the only part of the marketing mix that does not generate costs. / true or false
Answers (1)
To a retail business owner, what is "cost"
Answers (2)
Trudy and Ben file a joint return. Trudy's reported income creates $200 of income tax and Ben's reported income creates $180 of income tax. In addition to the reported income, Trudy has unreported income on which she owes $50 of income tax.
Answers (1)
New Questions in Business
Economies of scale are ways that a company can lower the cost per unit by selling more units overall A. True B. False
Answers (1)
Suppose warren buffet withdraws $1 million from his checking account at chase manhattan bank. if the required reserve ratio is 20 percent, what is the maximum change in deposits in the banking system?
Answers (1)
The market system's answer to the fundamental question "how will the goods and services be produced?" is essentially
Answers (1)
You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.1 million, which will be depreciated straight-line to zero over its four-year life.
Answers (1)
What is the difference is between saving and investing?
Answers (2)
Home » Business » Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna. a.
Sign Up Forgot Password?