Lance contributed investment property worth $620,000, purchased Five years ago for $287,500 cash, to Cloud Peak LLC in exchange for an 70 percent profits and capital interest in the LLC. Cloud Peak owes $482,500 to its suppliers but has no other debts.3.value:1.00 pointsRequired informationa. What is Lance’s tax basis in his LLC interest?ReferenceseBook & ResourcesProblemDifficulty: 1 EasyLearning Objective: 20-02 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.Check my work4.value:1.00 pointsRequired informationb. What is Lance’s holding period in his interest?ReferenceseBook & ResourcesProblemDifficulty: 1 EasyLearning Objective: 20-02 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.Check my work5.value:1.00 pointsRequired informationc. What is Cloud Peak’s basis in the contributed property?ReferenceseBook & ResourcesProblemDifficulty: 1 EasyLearning Objective: 20-02 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.Check my work6.value:1.00 pointsRequired informationd. What is Cloud Peak’s holding period in the contributed property?
