Frank and Bob Are Equal Members in Soxy Socks, LLC

question 11

Multiple Choice

Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $60,000 in cash and $60,000 worth of equipment. Frank's adjusted basis in the equipment was $45,000. Bob contributed $60,000 in cash and $60,000 worth of land. Bob's adjusted basis in the land was $20,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $68,000. How much gain (loss) related to this transaction will Bob report on his X4 return?

• A) $8,000
• B) $12,000
• C) $44,000
• D) $52,000

Acknowledge the differentiation between civil law and criminal law in terms of legal liability.

Recognize the importance of legislative purpose in statutory interpretation and the tools used by courts to resolve ambiguities.

Understand the distinction between substantive and procedural law.

Recognize the hierarchy of laws within the U.S. legal system and the concept of federal supremacy.

---

Definitions:

Chunking

A cognitive strategy that involves breaking down information into smaller, manageable units, making it easier to process and remember.

Durable Memory

A type of long-term memory known for its strength and longevity, capable of lasting years or even an entire lifetime.

Structural Encoding

The process of encoding sensory input that has significant recognizable features.

Visualizing

Visualizing involves forming mental images or scenarios in the mind's eye, often used as a cognitive strategy for problem-solving, planning, or enhancing performance.