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Problem $20-42($LO $20-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

When High Horizon LLC was formed, Maude contributed the following assets in exchange for a $25$ percent capital and

profits interest in the LLC:

$*$Nonrecourse liability secured by the land equals $$171,000$

Hiro, Harold, and Sofiya each contributed $$268,750$ in cash for a $25$ percent profits and capital interest.

Note: Leave no answer blank. Enter zero if applicable.

Problem $20-42$ Part a $($Algo$)$

a$.$ How much gain or loss will Maude and the other members recognize?

$!$

Required information

Problem $20-42($LO $20-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

When High Horizon LLC was formed, Maude contributed the following assets in exchange for a $25$ percent capital and

profits interest in the LLC:

$*$Nonrecourse liability secured by the land equals $$171,000$

Hiro, Harold, and Sofiya each contributed $$268,750$ in cash for a $25$ percent profits and capital interest.

Note: Leave no answer blank. Enter zero if applicable.

Problem $20-42$ Part b $($Algo$)$

b$.$ What is Maude's tax basis in her LLC interest?

Tax basis

$!$

Required information

Problem $20-42($LO $20-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

When High Horizon LLC was formed, Maude contributed the following assets in exchange for a $25$ percent capital and

profits interest in the LLC:

$*$Nonrecourse liability secured by the land equals $$171,000$

Hiro, Harold, and Sofiya each contributed $$268,750$ in cash for a $25$ percent profits and capital interest.

Note: Leave no answer blank. Enter zero if applicable.

Problem $20-42$ Part a $($Algo$)$

a$.$ How much gain or loss will Maude and the other members recognize?

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