Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $50,000 in cash and $50,000 worth of equipment. Frank's adjusted basis in the equipment was $35,000. Bob contributed $50,000 in cash and $50,000 worth of land. Bob's adjusted basis in the land was $30,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $60,000. How much gain (loss) related to this transaction will Bob report on his X4 return?

A. $25,000.
B. $35,000.
C. $10,000.
D. $15,000.


Answer: A

Business

You might also like to view...

When a corporation issues stock at a premium, it reports the premium as an other income item on the income statement

a. True b. False Indicate whether the statement is true or false

Business

Two broad types of franchising arrangements are product/trademark franchising and business format franchising

Indicate whether the statement is true or false

Business

Sable and Rex agree while talking on the phone to form a partnership to deal in transfers of real property. Their partnership agreement is legally binding

A. only if a copy of the agreement is filed in the appropriate state office. B. only if the agreement is reduced to writing. C. only if the parties exchange valid consideration. D. without more.

Business

Give the ways we avoid facing ethical dilemmas

Business