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AnnyKZ [126]
3 years ago
8

Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co

ntributing cash, property, or both. In addition to the members' contributions, their LLC will obtain a $52,000 nonrecourse loan from First Bank at the time it is formed. Brett contributes cash of $6,000 and a building he bought as a storefront for the motorcycles. The building has an FMV of $47,000 and an adjusted basis of $32,000 and is secured by a $37,000 nonrecourse mortgage that the LLC will assume. What is Brett's outside tax basis in his LLC interest
Business
1 answer:
yKpoI14uk [10]3 years ago
6 0

Answer:

Brett's outside tax basis in his LLC interest = $48,000

Explanation:

As per the data given in the question,

Cash = $6,000

Adjusted basis of building = $32,000

Debt of building = -$37,000

50% profit sharing ratio × $52,000 = $26,000

Now recourse mortgage - adjusted basis = ($37,000-$32,000)

= $5,000

Remaining mortgage on building = 50% × $32,000

= $16,000

Brett's outside tax basis in his LLC interest = $48,000

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The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis o
Anna35 [415]

Answer:

Donna made a realized gain of 8,000 dollars

the basis for the building now will be of 152,000 dollars

Explanation:

<u><em>realized gain:</em></u>

insurance proceeds less replacement cost:

160,000 - 152,000 = 8,000

<em><u>the basis</u></em> (value of the new office building for tax purposes) will be the 152,000 which is the cost of the office building

6 0
3 years ago
Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personn
Vadim26 [7]

Answer:

$13,532 .00

Explanation:

The cost allocation is usually based on a measurable factor such as area occupied, number of students etc. The more the measurable factor related to a unit/department, the more the cost assigned to the departments on the basis of the size of the measurable value.

Total number of employees

= 640

the amount of cost allocated to Department B under the direct method would be

= 199/640 * $43,520

= $13,532

3 0
3 years ago
Bonds are
Alexxx [7]

Considering the available options, Bonds are a "<u>store of value, but not a medium of exchange."</u>

<h3>What are Bonds?</h3>

Bonds is a term or entity in the financial world to describe a form of fixed-income security that has its terms stipulated in an indenture or legal contract.

<h3>Medium of Exchange</h3>

On the other medium of exchange is an entity used in a transaction to exchange goods or services.

In modern times, the medium of exchange is currency or money.

Hence, in this case, it is concluded that the correct answer is option B. "<u>store of value, but not a medium of exchange."</u>

Learn more about Bonds here: brainly.com/question/25425872

4 0
2 years ago
According to Michael Porter, a firm’s _____ is composed of primary and secondary support activities that can lead to competitive
Anastasy [175]

Answer:

The correct word for the blank space is: value chain.

Explanation:

American economist Michael E. Porter (<em>born in 1947</em>) coined the term value chain to denote the interrelated operating activities businesses perform during the process of converting raw materials into finished products. The goal in value chain analysis is to find ways to add value to the product along each part of the process and do so at the lowest possible cost.

4 0
3 years ago
A justice who agrees with the outcome of a case but not the reason proffered by other justices can issue a dissenting opinion th
vodka [1.7K]

Answer: False

Explanation:

A dissenting opinion refers to an opinion in a legal case that's written by the judge(s) who disagree with the court's majority opinion that gives rise to its judgment.

It should be noted that a justice who agrees with the outcome of a case but doesn't agree with the reason that was proffered by other justices can issue a concurring opinion and not a dissenting opinion.

Therefore, the correct option is False.

8 0
3 years ago
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