Sweeney originally contributed $242,000 in cash for a one-fourth interest in the Gilbert LLC. During the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sweeney originally contributed $242,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $145,200 and he withdrew $96,800 cash. The LLC's liabilities are $121,000, of which Sweeney's share is $30,250. The LLC has $60,500 of hot assets, of which Sweeney's share is $15,125. Sweeney sells his LLC interest to Jana for $319,440 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $ the remaining $ I of which $ recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? $ recognized as ordinary income, with Sweeney originally contributed $242,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $145,200 and he withdrew $96,800 cash. The LLC's liabilities are $121,000, of which Sweeney's share is $30,250. The LLC has $60,500 of hot assets, of which Sweeney's share is $15,125. Sweeney sells his LLC interest to Jana for $319,440 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $ the remaining $ I of which $ recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? $ recognized as ordinary income, with
Expert Answer:
Answer rating: 100% (QA)
1 Computation of gain on sale of sweeny contribution of cash b... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
Students also viewed these law questions
-
Sweeney originally contributed $298,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $178,800...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
In Exercises 8586, find a. (f g)(x); b. (g f)(x); c. (f g)(3). f(x) = x 2 + 3, g(x) = 4x - 1
-
Construct a confidence interval suitable for testing the claim from Exercise 6. What feature of the resulting confidence interval leads to the same conclusion from Exercise 6?
-
The rain forest of Brazil produces oxygen for the whole world, yet it yields no monetary return to that country. Given that the industrialized nations consume the most oxygen, those nations ought to...
-
The following are the items in the UKs 2021 balance of payments: billions Exports of goods 323.56 Imports of goods 492.77 Exports of services 330.73 Imports of services 189.55 Net income flows 11.87...
-
Cost of Goods Sold Ivano Company has collected cost accounting information for the following subset of items for Years 1 and 2. Year 1 Year 2 tem: Direct materials used in production Direct...
-
Make an appropriate substitution and solve the equation. p (p -2)= p+6 The solution set is +6+233 +1 2
-
Town and Country Hardware (T&CH) is a closely owned business founded six years ago by Caleb and Jasmine Wright. T&CH has retail hardware stores located at three lake communities along the Virginia...
-
Pearland Construction Company (PCC) entered into a contract to build a parking complex. The project will commence on January 1, 2017. The complex will cost. Approximately $600,000 and will take 3...
-
Each team represents a group of Product Procurement Specialists for their company. Your team is responsible for acquiring a quantity of 100,000 units... but your total shipping will realize economies...
-
A middle-party, Texas Bonds, have approached their bank with a request for the issuance of demand guarantees to an end-buyer in Africa in respect of the sale of three machines for the total sales...
-
3. The population in Terre Haute Indiana in 2012 was 61,112 in 2019 the population was 60,622. Clinton Indiana's population in 2012 was 4,800 residents in 2019 4,700 people called Clinton home....
-
1. Steve is in Pittsburgh, PA and Beverly is in Philadelphia, PA which is 300 miles away. They plan to meet at 10 AM in Harrisburg, PA which is 100 miles from Philadelphia. Steve will drive at 60 mph...
-
According to World Atlas, only about 2% of the global populationhave green eyes, and only about 10% of the global population areleft-handed. Assume these traits are independent of each other.What...
-
The Supplies Expense account was examined. It was found that $500 of the supplies had not been used and, therefore, should not have been expensed this year. What corrections, if any, should be made...
-
Suppose that a flow network G = (V, E) violates the assumption that the network contains a path s t for all vertices V. Let u be a vertex for which there is no path s u t. Show that there must...
-
On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note. The note is payable in five installments, with the first payment due...
-
Financial accounting rules do not always match the tax treatment of transactions involving groups of U.S. corporations. List at least two areas where tax and accounting rules differ when groups of...
-
Through a "Type C" reorganization, Springer Corporation was merged into Spaniel Corporation last year. Springer shareholders received 40% of the Spaniel stock in exchange for all of their Springer...
-
Distinguish between empowerment and enlistment.
-
The employees of a midsized printed circuit-board manufacturer had been excited about their empowerment program during its first several months of operation. A number of solid suggestions for...
-
Wanda Brown had worked hard to achieve her rapid advancement from shipping/receiving clerk to shipping/receiving manager. She had an uncanny ability to focus on a task, break it into its component...
Study smarter with the SolutionInn App