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Luden [163]
3 years ago
9

On December 31, 2016, Yong sells his 10% interest in Catawissa LLC to Mei for $17,500. Yong is a calendar year taxpayer. Catawis

sa owns no hot assets, and its tax year ends on September 30. On October 1, 2016, Yong’s basis in the LLC interest was $11,000. His share of current LLC income is $4,000 for the period in which he owned the LLC interest (October 1 to December 31).
Yong recognizes a $____________ capital gain on the sale.
Business
1 answer:
Katyanochek1 [597]3 years ago
5 0

Answer:

$6,500

Explanation:

Capit gain on sales = sales of interest by Yong -basis of Yong in the LLC interest

Sales of interest by Yong $17,500

Less Basis of Yong in the LLC interest $11,000

Gain $6,500

Therefore Yong will tend to recognize a gain of $6,500 because he makes a sale of $17,500 in which his basis in the LLC interest was $11,000 making him to have a capital gain of $6,500

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The unadjusted cost of goods sold is $395,000

<h3>What is cost of goods sold?</h3>

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