Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC is $13,000. This includes his $3,100 one-fourth share of the LLC's debt. Bob's 704 (b) capital account is $20,000. If Tom bought Bob's LLC interest for $23,000, what would Tom's outside basis be in Freedom, LLC?
A. 23,000
B. 26,100
C. 19,900
D. 13,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Gomer decides to spend an hour playing basketball rather than studying. his opportunity cost is:
Answers (1)
Which of the following types of teams is the most autonomous? A. Self-managing teamsB. Quality circlesC. Semiautonomous work groupD. High-performance work teamsE. Self-designing teams
Answers (1)
What is a trade balance? a. a method of determining which countries to trade with b. a method of comparing the value of currencies c. a comparison between a country's imports and exports d. a comparison between a country's taxes and services
Answers (1)
Last year your performance was not very good and your performance rating was below average, but this year you have done very well exceeding your performance goals. to your surprise, your boss gives you just an average performance rating.
Answers (1)
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $435,000, and its year-end receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time.
Answers (1)
New Questions in Business
If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will decrease. b.
Answers (1)
Which of the following is a disadvantage of the sole proprietorship form of ownership
Answers (2)
Products that are essential for life, such as water or groceries, yield more marginal utility than rare products, such as diamonds or luxury vehicles. A. True B. False.
Answers (1)
Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost.
Answers (1)
Which of the following is true of internal recruiting? a. It increases recruitment time and costs. b. It targets job applicants that do not currently work for the organization. c. It improves employee commitment and morale. d.
Answers (2)