Belinda owns a 30% profit and loss interest in the BOW LLC,and her basis in the interest is $30,000 excluding her share of the LLC’s liabilities. Belinda guarantees a $40,000 LLC debt. Remaining liabilities (not guaranteed by any of the LLC members) are $100,000. Belinda’s basis in the LLC is $100,000.
Answer the following statement true (T) or false (F)
True
Rationale: Belinda’s $30,000 basis is increased by her share of the LLC’s liabilities. The $40,000 liability that Belinda guarantees is allocated completely to her. The remaining $100,000 of debt is allocated according to the partners’ profit-sharing ratios with $30,000 allocated to Belinda. Belinda’s basis, then, is $100,000 ($30,000 basis + $40,000 guaranteed debt + $30,000 share of nonrecourse debt).
You might also like to view...
Which of the following is a use of secondary data?
A) to determine the population and growth rate in almost any geographical area B) to evaluate market performance C) to help make public policy decisions D) to predict broad changes in a culture's "way of life" E) all of the above
A scale's level of measurement may be:
A) open-ended, categorical, qualitative B) whimsical, classical, scientific C) open-ended, categorical, metric D) metric, open-ended, scientific E) element measurement
As a Muslim, Ahmed takes breaks from his work at certain times each day to pray. His employer makes this reasonable accommodation to the work schedule to support Ahmed and to avoid illegal religious discrimination under the ______.
A. Civil Rights Act of 1964 B. Uniformed Services Employment and Reemployment Rights Act C. Employment Act D. Immigration and Nationality Act
If the object of a contract becomes illegal after the contract is entered into, the parties are discharged from the contract
Indicate whether the statement is true or false