Suzy Owns a 30% Interest in the JSD LLC

question 104

Multiple Choice

Suzy owns a 30% interest in the JSD LLC. In liquidation of the entity, Suzy receives a proportionate distribution of $30,000 cash, inventory (basis of $16,000, fair market value of $18,000) , and land (basis of $25,000, fair market value of $30,000) . Suzy's basis in the entity immediately before the distribution was $80,000. As a result of the distribution, what is Suzy's basis in the inventory and land, and how much gain or loss does she recognize?

• A) $0 basis in inventory; $25,000 basis in land; $0 gain or loss.
• B) $16,000 basis in inventory; $34,000 basis in land; $0 gain or loss.
• C) $16,000 basis in inventory; $25,000 basis in land; $9,000 loss.
• D) $18,000 basis in inventory; $32,000 basis in land; $0 gain or loss.
• E) $16,000 basis in inventory; $25,000 basis in land; $39,000 loss..

Identifying and classifying isomers, including constitutional and cis-trans isomers.

Predicting molecular geometry and estimating bond angles.

Describing the concept of free rotation about bonds in organic molecules.

Applying molecular orbital theory to explain bonding and molecular structure.

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Definitions:

Creditor

An entity to which a debtor owes money.

Incorporator

A person or entity that signs the articles of incorporation, thereby initiating the creation of a corporation.

De Jure Status

A legal term that means something is recognized by law, regardless of the actual situation on the ground.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates.