Question: When Padgett Properties LLC was formed, Nova contributed land (value of $268,500 and basis of $67,125 ) and $134,250 cash, and Oscar contributed cash of

When Padgett Properties LLC was formed, Nova contributed land (value of

When Padgett Properties LLC was formed, Nova contributed land (value of $268,500 and basis of $67,125 ) and $134,250 cash, and Oscar contributed cash of $402,750. 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 $402,750, how much tax gain will Nova and Oscar report? Nova reports a $ gain and Oscar's gain is $

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