Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $22,000 on December 31, 2016, after accounting for the calendar year LLC’s 2016 operations. On that date, the LLC distributes $25,000 cash to Lola in a proportionate no liquidating distribution.

She recognizes a $___________ from this distribution.

Answer rating: 100% (QA)

She should recognize a 3000 ... View the full answer