What is brady initial book capital account balance

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Raja and Brady form and LLC that is treated as a partnership for federal income tax purposes. Raja contributes property with a tax basis of $300 and fair market value of $800. In return Raja receives a 40% ownership interest in the LLC. Brady contributes property with a tax basis of $1,000 and fair market value of $1,200. In return Brady receives a 60% ownership interest in the LLC.

Problem a. How much gain or loss does Raja realize?

Problem b. How much gain or loss does Raja recognize?

Problem c. What is Raja's initial outside basis?

Problem d. What is the partnership's tax basis (inside basis) in the property contributed by Raja?

Problem e. What is Brady's initial outside basis?

Problem f. What is Brady's initial book capital account balance?

Reference no: EM132796068

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