What would tom outside basis be in freedom

Assignment Help Financial Accounting
Reference no: EM132990511

Problem 1: Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC is $6,500. This includes his $1,800 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $13,500. If Tom bought Bob's LLC interest for $10,000, what would Tom's outside basis be in Freedom, LLC?

Option 1: $10,000.
Option 2: $6,500.
Option 3: $8,200.
Option 4: $11,800.

Reference no: EM132990511

Questions Cloud

What is jerry adjusted basis in the partnership interest : A reduction of $4,700 in his share of partnership debt. What is Jerry's adjusted basis in his partnership interest at the end of the year?
What is the breakeven point in units : Question - Assume a sales price per unit of $20, variable cost per unit $15, and total fixed costs of $20880. What is the breakeven point in units
How much is the loss absorption capacity of each partner : From a Cash Priority Program, how much is the loss absorption capacity of each partner
Minimum staffing impact ability to meet budgeted numbers : How does "minimum staffing" impact your ability to meet your budgeted numbers?
What would tom outside basis be in freedom : Bob's 704(b) capital account is $13,500. If Tom bought Bob's LLC interest for $10,000, what would Tom's outside basis be in Freedom, LLC?
How much gain must the sa general partnership recognize : Sue and Andrew form SA general partnership. How much gain must the SA general partnership recognize on the transfer of assets from Sue and Andrew?
Example of complex adventure works query online : Describe how complex a query can get by locating an example of a complex Adventure Works query online.
What amount of gain does simone recognize in the exchange : Simone transferred 100 percent of her stock, What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives?
Explain appropriate drug therapy : Explain the appropriate drug therapy for a patient who presents with MDD and a history of alcohol abuse.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss how the exchange requirements

Discuss how the exchange requirements that mandate traders to put up collateral in the form of a margin requirement and to use this account to mark their profits or losses for the day serve to eliminate credit or default risk.

  How many days does ken company have

how many days does Ken Company have from the date of purchase before the payment is considered to be late? Days

  What will be the balance in the account four years from now

What will be the balance in the account 4 years from now? Mr. Smith deposits $1,000 into a savings account that pays 5 percent interest

  What is the growth rate of the dividends of Company E stock

Company E's dividends are expected to grow at a constant rate indefinitely. What is the growth rate of the dividends of Company E's stock

  What conclusion upon the accounting treatment to be adopted

What further evidence you would seek in order to reach a conclusion upon the accounting treatment to be adopted in the financial statements

  How much is the return on investment

Fixed costs of $200000 and sales of $2000000. The center's average operating assets were $700000. How much is the return on investment?

  The memphis pecan company

The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory.

  Identify the debtors to whom will send a payment request

Using the ledger information identify the debtors to whom you will send a payment request and prepare the letter/ email you will send.

  What is the total profit

What is the total profit? How is it taxed if the trader is (a) a hedger and (b) a speculator? Assume that the trader has a December 31-year end

  What is the appropriate end-of-life cash flow

GIM's effective tax rate is 40%. What is the appropriate "end-of-life" cash flow related to these items that should be used in the analysis

  How do president recommendations violate generally accepted

How do the president's recommendations violate generally accepted accounting principles

  Prepare schedule showing the income statement effects

Considering the three different methods Ibran used to obtain financing above, why might a company choose one method over the other?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd