Question

This year, HPLC, LLC was formed by H Inc., P Inc., L Inc., and C Inc....

This year, HPLC, LLC was formed by H Inc., P Inc., L Inc., and C Inc. Each member had an equal share in the LLC's capital. H Inc., P Inc., and L Inc. each had a 30% profits interest in the LLC with C Inc. having a 10% profits interest. The members had the following tax year-ends: H Inc. [1/31], P Inc. [5/31], L Inc. [7/31], and C Inc. [10/31]. What tax year-end must the LLC use?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

correct option is = [5/31]

There is no majority taxable year. The partners doesn't have the same year-end. So least aggregate deferral test is to be performed.

Image of page 4

Add a comment
Know the answer?
Add Answer to:
This year, HPLC, LLC was formed by H Inc., P Inc., L Inc., and C Inc....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25...

    When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: Basis Fair Market Value Maude: Cash $ 25,000 $ 25,000 Land* 115,000 385,750 Totals $ 140,000 $ 410,750 *Nonrecourse debt secured by the land equals $162,000 James, Harold, and Jenny each contributed $248,750 in cash for a 25 percent profits and capital interest. b. What is Maude’s tax basis in her LLC interest? c. What tax...

  • Tom is talking to his friend Bob, who has an interest in Freedom, LLC. about purchasing...

    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 $15.000. This includes his $3.500 one-fourth share of the LLC's debt. Bob's 704(6) capital account is $22.000. If Tom bought Bob's LLC interest for $27,000, what would Tom's outside basis be in Freedom, LLC? Multiple Choice $15.000 O $23.500 O $27,000 O $30,500 Erica and Brett decide to form their new motorcycle business as...

  • 1. Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an...

    1. Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $56,000 and $45,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of...

  • Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members...

    Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $8,500 outside basis, (2) Joe, a member with a 45% profits and capital interest and a $13,500 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $5,500 outside basis. The...

  • Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January...

    Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $355,000, $90,000, and $215,000, respectively. WLKT Partners contributed an additional $90,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $205,900 during 20Y2. The members’ equity accounts are also credited with 12% interest on each member's January 1 capital balance. Any remaining income is to be shared in the...

  • Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January...

    Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $165,000, $40,000, and $100,000, respectively. WLKT Partners contributed an additional $40,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $95,700 during 20Y2. The members’ equity accounts are also credited with 15% interest on each member's January 1 capital balance. Any remaining income is to be shared in the...

  • Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members...

    Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $11,000 outside basis, (2) Joe, a member with a 45% profits and capital interest and a $16,000 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $8,000 outside basis. The...

  • LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners,...

    LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $180,000, $45,000, and $110,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $104,400 during 20Y2. The members’ equity accounts are also credited with 18% interest on each member's January 1 capital balance. Any...

  • Ch 12-3 Exercises and Problems LLC Net Income and Statement of Members' Equity Marvel Media, LLC,...

    Ch 12-3 Exercises and Problems LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $185,000, $45,000, and $110,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $107,300 during 2012. The members' equity accounts are also credited with 18% interest on each member's...

  • LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners,...

    LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $210,000, $55,000, and $125,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $121,800 during 20Y2. The members’ equity accounts are also credited with 12% interest on each member's January 1 capital balance. Any...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT