1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alenkasestr [34]
3 years ago
15

Lance contributed investment property worth $640,000, purchased three years ago for $245,000 cash, to Cloud Peak LLC in exchange

for an 75 percent profits and capital interest in the LLC. Cloud Peak owes $407,500 to its suppliers but has no other debts.
Required information
a. What is Lance’s tax basis in his LLC interest?
b. What is Lance’s holding period in his interest?
c. What is Cloud Peak’s basis in the contributed property?
d. What is Cloud Peak’s holding period in the contributed property?
Business
1 answer:
nexus9112 [7]3 years ago
6 0

Answer:

a. Tax basis $550,625

b.Three years

c. $245,000

d. Three years

Explanation:

a. Calculation to determine Lance’s tax basis in his LLC interest

Lance’s tax basis in his LLC interest will be $550,625 ( $245,000+$305,625)

Based on the information given Lance’s basis in his LLC INTEREST is been made up of the amount of $245,000 basis of the investment property he transferred to the LLC including his $305,625 share which is calculated as ($407,500 x 75%) of the LLC debt reason been that LLC general debt obligations are tend to be treated as NON RECOURSE DEBT which is why Lance’s profit sharing ratio is used to allocate a portion of the LLC debt to him.

b. Based on the information given Lance's Holding period in his interest is THREE YEARS in which Lance had been holding investment property.

c. Cloud Peak’s basis in the contributed property will be Basis of $245,000

d. Cloud Peak’s holding period in the contributed property is THREE YEARS.

You might be interested in
What problems should you be prepared for when entering a parkway
Aleksandr [31]
Problems that may occur when entering a parkway are: cars not yielding or moving over for oncoming traffic, cars not obeying the speed limit and cars not keeping up with the flow of traffic. It is important to make sure you check your surroundings multiple times when entering a parkway because you are coming into traffic that has been moving at a much faster rate and trying it merge in with them. 
5 0
3 years ago
Help asap plzzzzzzzzzzzzzzzzzzzzzzzzzzz
Artemon [7]

Answer:

college board

Explanation:

3 0
2 years ago
Which is an example of something that is inelastic?
sweet-ann [11.9K]
-Inelastic means that the consumers will still purchase the product at the same rate despite price changes.
-The answer would be cancer medication, because the consumer would still need to buy this regardless of price. Even if it puts them in a financial bind.
-When having your on a car or watch, if the price of that item increases, you could be less likely to buy it.
-When picking out a hamburger at a restaurant, the customer is most likely to by a cheaper burger if they are on a budget.
5 0
3 years ago
The group responsible for establishing standards that identify material specifications and testing procedures is ____.
Mrrafil [7]

Answer: ASTM International

Explanation:

The group that is responsible for the establishment of standards which identify material specifications and testing procedures is referred to as ASTM International.

ASTM International was formerly called the American Society for Testing and Materials. This is an international standards organization which technical standards for different products, materials, systems, and services.

It was put in place in order to improve safety and to also improve the quality o both the consumer and the industrial products.

6 0
3 years ago
Which of the following should be disclosed by a company providing health care benefits to its retirees? I. The assumed health ca
mars1129 [50]

Answer: Both I and II

I. The assumed health care cost trend rate used to measure the expected cost of benefits covered by the plan. II. The accumulated post retirement benefit obligation.

Explanation:

Company must disclose the expected cost of benefits covered by their health care plan and also the accumulated post retirement benefit plan obligation.

5 0
3 years ago
Other questions:
  • Which ocean resource is currently not economically profitable to mine? gravel sand manganese nodules salt?
    7·2 answers
  • Dairy Days Ice Cream sells ice cream cones for​ $5 per customer. Variable costs are​ $2 per cone. Fixed costs are​ $2100 per mon
    8·1 answer
  • A retail outlet has received complaints from customers that checking prices, finding out about stock, and checking out takes too
    13·2 answers
  • Resolve (7x+19)/(x+1)(x+5) into partial fraction​
    5·1 answer
  • Which of the following is a characteristic of a management control​ system? A. It deals with coordinating planning across the or
    13·1 answer
  • What does required fields mean someone please answer
    14·2 answers
  • The company allocated manufacturing overhead of using a predetermined overhead rate of per machine hour. The total actual manufa
    12·1 answer
  • A couple needs $60,000 as a down payment for a home. If they invest the $45,000 they have at 4% compounded quarterly, how long w
    7·1 answer
  • Last year during the beginning of the Pandemic, name 5 household products people were hoarding?
    15·2 answers
  • What risk does Sarah run if she chooses a long-term care policy with a short benefit period of 2 years
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!