The BLM LLC's Balance Sheet on August 31 of the Current

question 68

Multiple Choice

The BLM LLC's balance sheet on August 31 of the current year is as follows. $\begin{array}{lrr}&\text { Adjusted } \\&\text { Basis }&\text { F M V } \\ \text { Cash } & \$ 60,000 & \$ 60,000 \\\text { Receivables } & -0- & 150,000 \\\text { Capital assets } & 90,000 & 300,000 \\& \underline{\mathbf{\$ 1 5 0 , 0 0 0}} &\underline{ \mathbf{\$ 5 1 0 , 0 0 0}} \\\\\text { Nonrecourse debt } & \$ 90,000 & \$ 90,000 \\\text { Barney, capital } & 20,000 & 140,000 \\\text { Lillie, capital } & 20,000 & 140,000 \\\text { Marshall, capital } & 20,000 & \underline{140,000} \\& \mathbf{\$ 1 5 0 , 0 0 0} & \mathbf{\$ 5 1 0 , 0 0 0}\end{array}$
The nonrecourse debt is shared equally among the LLC members. On that date, Lillie sells her one-third interest to Robyn for $170,000, including cash and relief of Lillie's share of the nonrecourse debt. Lillie's outside basis for her interest in the LLC is $50,000, including her share of the LLC's debt. How much capital gain and/or ordinary income will Lillie recognize on the sale?

• A)$100,000 capital gain; $50,000 ordinary income.
• B)$120,000 capital gain; $0 ordinary income.
• C)$150,000 capital gain; $0 ordinary income.
• D)$70,000 capital gain; $50,000 ordinary income.
• E)None of the above.

Analyze the impact of geography on the likelihood of escaping slavery and reaching freedom.

Identify the significance of cultural practices and resistance strategies within slave communities.

Understand the legal and societal limitations placed on slaves and free blacks.

Acknowledge the role of gender under the system of slavery.

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Definitions:

Emotional Resources

Emotional resources are the internal assets, such as resilience, optimism, and emotional intelligence, that individuals draw upon to manage stress and challenges.

Material Resources

Physical or tangible assets that can be used to produce goods and services, including natural resources, buildings, machinery, and tools.

Laissez-faire Leadership

A leadership style characterized by minimal intervention in the affairs of others, allowing people to act according to their own preferences.

Subordinates

Individuals or groups who are lower in rank, position, or authority within a hierarchy.