Based on the fair market value of the assets

Assignment Help Financial Accounting

Reference no: EM13753431

The TGF LLC had three equal interest holders, T, G, and F. They each had a capital account of $400,000 and the LLC had $300,000 recourse liabilities. The fair market value of the LLC assets was $1,500,000 their bases was $700,000 when H made a capital contribution for a one-fourth interest in capital, profits, and losses.

a. Based on the fair market value of the assets, how much should H contribute for his one-fourth interest?

b. Assume that soon after H became a member of the LLC the LLC sold the assets for $1,500,000, when their capital was still $400,000. What should be Hs share of the profit from the sale of the assets, assuming the members are dealing at arms length?

Reference no: EM13753431

Questions Cloud

Health care services on a global scale : Compare the key similarities and differences between the concepts of telemedicine, tele-care, and tele-health. Provide an example of how each method is affecting the quality of today's health care services on a global scale

Deleting and recovering the shell path variable : Deleting and Recovering the Shell PATH Variable, uppose a CIS255 student was experimenting with shell variables and accidentally deleted his / her PATH variable. The student decided he / she does not need the PATH variable.

What is the amount of the additional smaller payment : A loan of 10,000 is being repaid with payments of 500 starting one month after the loan is made and lasting as long as necessary. A final smaller payment is made one month after the last regular payment of 500. What is the amount of the additional sm..

Decision-making process : Your boss, the chief executive officer (CEO), realizes that you do not have much practice in this higher level, decision-making process and has asked you to write a memo describing your understanding of how to make important decisions.

Based on the fair market value of the assets : The TGF LLC had three equal interest holders, T, G, and F. They each had a capital account of $400,000 and the LLC had $300,000 recourse liabilities. Based on the fair market value of the assets, how much should H contribute for his one-fourth intere..

What are differences in the art of italy and northern europe : What are the differences in the art of Italy and northern Europe during the Renaissance? Why is the human figure so important to Renaissance art? What ideals were expressed through depictions of the human body?

Present in current day capitalist society : What kinds of leveling mechanisms are present in current day capitalist society? Are they effective in reducing economic inequality? How do you see your economic future in America or other cultures that you may live in.

Suggest strategy and process for chief executive officer : As a newly minted CIO, you have been hired to join a company without a history of project best practices. Suggest strategy and process for your Chief Executive Officer (CEO) to develop standards for your organization that is without any such organ..

Interest in capital and profits and losses : Farmer contributed land to an LLC in exchange for a 34% interest in capital and profits and losses. Farmer’s basis in the property was $300,000 and its fair market value was $540,000. Contractor contributed his services and the use of his equipment f..

User Account

All Pages