Frank and Bob Are Equal Members in Soxy Socks, LLC

question 18

Multiple Choice

Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $44,000 in cash and $44,000 worth of equipment. Frank's adjusted basis in the equipment was $29,000. Bob contributed $44,000 in cash and $44,000 worth of land. Bob's adjusted basis in the land was $36,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $66,000. How much gain (loss) related to this transaction will Bob report on his X4 return?

• A)$22,000
• B)$33,000
• C)$19,000
• D)$41,000

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Definitions:

Supine Position

A body position where the person lies flat on their back with the face up, often used in medical examination or treatment.

Thick Yellow Mucus

A type of phlegm or bodily secretion, often indicating infection or inflammation in the body, such as a cold or sinusitis.

Oxygen Saturation

A measure of the amount of oxygen carried by hemoglobin in the blood, expressed as a percentage of the maximum carrying capacity.

Respiratory Rate

The number of breaths a person takes per minute, an important vital sign indicative of respiratory function and overall health.