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Elden [556K]
4 years ago
13

Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in

Freedom, LLC, is $7,000. This includes his $1,900 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $14,000. If Tom bought Bob's LLC interest for $11,000, what would Tom's outside basis be in Freedom, LLC
Business
1 answer:
olga55 [171]4 years ago
4 0

Answer: $12,900

Explanation:

From the question, we are told that Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about buying his LLC interest. Bob's outside basis in Freedom, LLC, is $7,000 which includes his $1,900 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $14,000. We are further told that Tom bought Bob's LLC interest for $11,000.

Tom's outside basis be in Freedom, LLC will be the amount that he paid for Bob's LLC interest plus the share of LLC’s debt. This will be:

= $11,000 + $1,900

= $12,900

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8 0
3 years ago
Read 2 more answers
During the Great Depression, a. the pineapple industry finally became highly profitable as world demand for fruits rose. b. Lati
Sergeeva-Olga [200]

Answer:

e. domestic instability led to the creation of dictatorships.

Explanation:

The Great Depression was a period of severe economic meltdown or downturn (crisis) of the industrialized world and it started from the United States of America, typically lasting for about ten years (1929-139).

Basically, the Great Depression started in America on the 4th of September, 1929 as a result of a major fall in the prices of stocks and consequently, leading to a stock market crash on the 29th of October, 1929.

Hence, the negative effects of the Great Depression includes a decline in investments, tax revenues, market price, personal income level, consumer spending, profits and a general rise in unemployment rate.

During the Great Depression, domestic instability led to the creation of dictatorships and autocratic leaderships (government) across many countries.

Generally, dictatorship is characterized by a single leader (dictator) having absolute power and as such he or she makes all the rules, policies and decisions without consulting or taking suggestions from anyone else.

4 0
3 years ago
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases
eimsori [14]

Answer:

The correct answer is $800

Explanation:

Giving the following information:

Fulbright Corp. uses the periodic inventory system.

Fulbright made the following purchases (listed in chronological order of acquisition):

· 40 units at $100

· 70 units at $80

· 170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.

Ending inventory= [(100 + 80 + 60)/3]*10

Ending inventory= 80*10= $800

6 0
3 years ago
Butte sold a machine to a machine dealer for $50,000. Butte bought the machine for $55,000 several year ago and has a claimed $1
pishuonlain [190]

Answer:

c. $7,500 ordinary gain  

Explanation:

Depreciated value of Machine = $55,000 - $12,500  

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Sale price of Machine = $ 50,000

Gain on sale of Asset = $ 50,000 - $ 42,500

                                    = $ 7,500

Therefore, The amount and character of Butte's gain or loss is $7,500 ordinary gain.  

6 0
4 years ago
You invent of a new type of dog leash. You choose a market segmentation approach and decide to target the large national populat
natita [175]

Answer:

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Considering the scenario described above in the question, the best thing to do is "refine your approach by going back to the drawing board."

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7 0
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