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Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:     Basis Fair Market Value           Kevan:           Cash $15,000 $15,000       Land* 120,000 440,000       Totals $135,000 $455,000         *Nonrecourse debt secured by the land equals $210,000  Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)   a. How much gain or loss will Jerry, Dave, and Kevan recognize on the contributions?       Jerry Dave Kevan Gain or loss recognized

Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:     Basis Fair Market Value           Kevan:           Cash $15,000 $15,000       Land* 120,000 440,000       Totals $135,000 $455,000         *Nonrecourse debt secured by the land equals $210,000  Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)   a. How much gain or loss will Jerry, Dave, and Kevan recognize on the contributions?       Jerry Dave Kevan Gain or loss recognized

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:

 

  Basis Fair Market Value
         
Kevan:          
Cash $15,000 $15,000      
Land* 120,000 440,000      
Totals $135,000 $455,000      
 

*Nonrecourse debt secured by the land equals $210,000
 

Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)

 

a. How much gain or loss will Jerry, Dave, and Kevan recognize on the contributions?

 
 
  Jerry Dave Kevan
Gain or loss recognized      

    

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