Answer:
A$33,500
B. $100,500
Explanation:
A. Calculation to determine How much of the nonrecourse debt is allocated to Jokan
Nonrecourse debt allocated=($167,500-$100,500)/2
Nonrecourse debt allocated=$67,000/2
Nonrecourse debt allocated=$33,500
Therefore based on the information given the amount of the NONRECOURSE DEBT that is allocated to Jokan is 25% or $33,500
B. Calculation to determine the amount of Jokan's basis in the LLC interest following the contribution
Basis in the LLC interest=$33,500+($167,500-$100,500)
Basis in the LLC interest=$33,500+$67,000
Basis in the LLC interest=$100,500
Therefore the amount of Jokan's basis in the LLC interest following the contribution is $100,500
