Question: Exercise 10-23 (Algorithmic) (LO. 8) When Padgett Properties LLC was formed, Nova contributed land (value of $282,000 and basis of $70,500) and $141,000 cash, and

Exercise 10-23 (Algorithmic) (LO. 8)

When Padgett Properties LLC was formed, Nova contributed land (value of $282,000 and basis of $70,500) and $141,000 cash, and Oscar contributed cash of $423,000. Both partners received a 50% interest in partnership profits and capital.

a. How is the land recorded for 704(b) book capital account purposes?

For 704(b) book capital account purposes, Padgett records the land at $..................?

b. What is Padgett's tax basis in the land? $............?

c. If Padgett sells the land several years later for $423,000, how much tax gain will Nova and Oscar report? Nova reports a $.............? gain and Oscar's gain is $................?

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