Explanation:
Public relations are the relations a company make with the public. Such events include the direct contact of the company with the public. Whereas Sales Promotions are the events that are held by a company to promote their sales. Sales promotions and Public relations Events are often held by the companies to remain in spotlight.
In this question the given events are asked to classify as either Public Relations or Sales Promotions. So they are classified as follows:
Contests Public Relations
Product Samples Sales Promotions
Charity Events Public Relations
Giveaways Sales Promotions
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.
The paint rule regulates the 6h rule
Business services are expense items that do not become part of a final product.
Business services are intangible items such as IT, finance, management, shipping and more. These services support each other but do not become part of the final product. Installations and supplies are both part of the final product. Supplies to build and installations to put together.
I believe the answer is...... B