BUSINESS 089563 Gloria and Harry decide to start a new business as an LLC.

Gloria and Harry decide to start a new business as an LLC. They will each receive an equal profits(loss) interest by contributing property, cash, or a combination of both. Besides the memberscontributions, the LLC will obtain a $100,000 non recourse loan from First Bank at the time itis formed. Brett Contributes cash of $10,000 and a building he bought as a storefront forthe motorcycles. The building has a FMV of $90,000, an adjusted basis of $60,000, and issecured by a $70,000 non recourse mortgage that the LLC will assume. Computer outside taxbasis in his LLC interest.On 12/31/15, XYZ, LLC reported a $120,000 book loss. The following items were included in the losscomputation: sales Revenue of $60,000, Qualified Dividends of $30,000, Cost of Good Sold of $44,000,Charitable Contributions of $100,000, Employee Wages of $40,000, and Rent Expense of $26,000.What amount of ordinary business income (loss) will XYZ report on its 2015 return?Homer and George are 50-50 members in Wolves Rule aka (WW), LLC. In setting up WW Homer contributedCash of $100000 and equipment valued at $100,000. Homer’s tax basis in the equipment was $70,000.George contributed cash of $100,000 and Land with a FMV of $100,000. George’s tax basis in the land was $60,000. On 6/2from this exchange will George report on his 2015 return?land was $60,000. On 6/23/15, WW sells the land acquired from George for $120,000. What amount of gain(loss)Oscar is a limited partner in WW Sweet onions, LP. His share is $60,000 of ordinary business loss from WWSweet Onions. Prior to this, his tax basis is $40,000 and at risk amount is $20,000. In addition, Oscar hasordinary business income of $40,000 from Oscars Auctions, LP, as a general partner and ordinary bysiness incomeof $10,000 from Sally’s Sundries, as a limited partner. How much of the $60,000 loss from WW Sweet Onionscan Oscar deduct currently?bysiness incomeweet OnionsThe ABC Partnership Balance Sheet shows the following assets on December 1, 2015BasisFMVCash$180,000 $180,000Accounts Rec.$- $60,000Land$90,000 $120,000Total$270,000 $360,000Ashley is a 1/3 partner with an adjusted basis of $90,000 for her interest. If Ashley sells her completepartnership interest to Sandy for $120,000 cash, how much ordinary income and capital gain incomemust Ashley recognize from the saleOrdinary IncomeCapital GainSam has a 50% partnership interest in the SX Partnership and his outside basis is $112,000 at the end ofthe year prior to any distributions. On November 14, Sam received a proportionate operating distributionof $12,000 cash and some land worth $28,000 with a $16,000 tax basis to SX. What is the amount andcharacter of Sam’s recognized gain or loss and what is te new basis of his partnership interest?Gain:Basis:Lucy has $130,000 tax basis in her 50% partnership interest in LZ Partnership before receiving anydistributions. In the current year Lucy receives a proportionate current distribution of $20,000 cash andinventory with an $160,000 FMV and an $80,000 tax basis to LZ. What is Lucy’s basis in the inventory and hernewly computed basis in LZ after the distributionInventory Basis:Lucy’s LZ Basis:The balance sheet for AL Partnership includes the following assets right before liquidation:CashUnrealized receivablesTotalBasisFMV$10,000 $10,000$- $10,000$10,000 $20,000In the complete liquidation Anna receives the Cash and Leo (equal partner) receives the Unrealizedreceivables. They each have an outside basis in AL of $5,000. AL has no liabilities prior to theliquidation. What is the amount and character of Anna’s recognized gain or loss?