Questions by shane91 - Page 16
Dusan is a member of the Tonda LLC, and all members have equal interests in capital and profits. The LLC has made an optional adjustment-to-basis election. Dusan's interest is sold to Adele for $35,000. The balance sheet of the LLC immediately before the sale shows the following: Basis FMV Cash $40,000 $40,000 Depreciable assets 80,000 100,000 $120,000 $140,000 Dusan, capital $30,000 $35,000 Randal, capital 30,000 35,000 Thom, capital 30,000 35,000 Erin, capital 30,000 35,000 $120,000 $140,000 a. How much is the 754 adjustment? b. What is the amount of Adele's basis in the acquired interest? c. Which partner receives deductions related to the step-up?