Question

Laurel contributed equipment worth $150,000, purchased 8 months ago for $164,500 cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a 20 percent profits and capital interest in the LLC. Laurel agreed to guarantee all $12,600 of Sand Creek’s accounts payable, but she did not guarantee any portion of the $75,000 nonrecourse mortgage securing Sand Creek’s office building. Other than the accounts payable and mortgage, Sand Creek does not owe any debts to other creditors.

What is Laurel’s initial tax basis in her LLC interest?

Answer 1

0 soluhon:- Given hat 5 uxcased mon hs ago fo Launet agree d +o guaran kee d call 121600 any por Hon o the f 00 thus paya ble guavan kedRo .share in morlag Bubshehave e valuc, '50.000 tfi 21600 t (AS000 0.20) 01000 12 1600 000 7600

Answer 2

instead of takinng the equipment worth you need to take the purchased price.

164,500+12,600+15,000=192,100