Question: Exercise 21-20 (Algorithmic) (LO. 8) When Padgett Properties LLC, was formed, Nova contributed land (value of $318,000 and basis of $79,500) and $159,000 cash, and

Exercise 21-20 (Algorithmic) (LO. 8)

When Padgett Properties LLC, was formed, Nova contributed land (value of $318,000 and basis of $79,500) and $159,000 cash, and Oscar contributed cash of $477,000. Both members received a 50% interest in LLC 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 $477,000, Nova reports a $________________ gain and Oscar's gain is $_______________.

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