Question: When Austin Development LLC was formed, Michelle contributed land (value of $1,800,000 and basis of $600,000), and Chadwick contributed cash of $1,000,000 and mineral

When Austin Development LLC was formed, Michelle contributed land (value of $1,800,000

When Austin Development LLC was formed, Michelle contributed land (value of $1,800,000 and basis of $600,000), and Chadwick contributed cash of $1,000,000 and mineral rights (value of $800,000 and basis of $720,000). 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, Austin records the land at $ b. What is Austin Development's tax basis in the land? c. If Austin Development sells the land five years later for $2,500,000, Michelle reports a s gain and Chadwick's gain is $

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