Dusan is a member of the Tonda LLC, and all members have equal interests in capital and profits. The LLC has made an optional ad
justment-to-basis election. Dusan's interest is sold to Adele for $35,000. The balance sheet of the LLC immediately before the sale shows the following:
Basis FMV
Cash $40,000 $40,000
Depreciable assets 80,000 100,000
$120,000 $140,000
Dusan, capital $30,000 $35,000
Randal, capital 30,000 35,000
Thom, capital 30,000 35,000
Erin, capital 30,000 35,000
$120,000 $140,000
a. How much is the 754 adjustment?
b. What is the amount of Adele's basis in the acquired interest?
c. Which partner receives deductions related to the step-up?