Tom Is Talking to His Friend Bob, Who Has an Interest

question 105

Multiple Choice

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 $10,000. This includes his $2,500 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $17,000. If Tom bought Bob's LLC interest for $17,000, what would Tom's outside basis be in Freedom, LLC?

• A)$10,000
• B)$14,500
• C)$17,000
• D)$19,500

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Definitions:

Economic Support

Financial assistance provided to individuals or groups to help with living expenses, often from family, government, or charities.

Child Maltreatment

A broad range of behaviors that place a child at serious risk or result in serious harm (often used interchangeably with child abuse).

Physical Abuse

The infliction of physical harm or discomfort onto another individual, often a sign of power imbalance and manipulation in abusive relationships.

Sexual Abuse

Any form of non-consensual sexual contact or behavior, often exerting power over the victim and causing physical or psychological harm.