Three individuals want to start a catering company and to operate it as an LLC,...
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Accounting
Three individuals want to start a catering company and to operate it as an LLC, which will receive partnership tax treatment as the default for tax purposes. Chen contributes a van for transporting the food with a fair market value of $32,000 and an adjusted tax basis of $29,000 for a 25 percent profits and capital interest. Bo contributes a bakery shop with a fair market value of $230,000 and an adjusted tax basis of $175,000 for a 50 percent profits and capital interest. Jing contributes $60,000 in cash for a 25 percent profits and capital interest. The LLC does not have any debt (either from the partners or that it takes on directly from a bank).
The amount of taxable gain (or loss) Chen recognizes on the transactions above is $_______.
The amount of taxable gain (or loss) Bo recognizes on the transactions above is $_______.
The amount of taxable gain (or loss) Jing recognizes on the transactions above is $_______.
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