Your Client, Greg, Contributed Precontribution Gain Property to BIG LLC

question 177

Essay

Your client, Greg, contributed precontribution gain property to BIG LLC on December 31, 2019, in exchange for a
30% interest.
a. Describe two types of distributions that might result in some or all of this precontribution gain being recognized by Greg.
b. In general terms, what is the purpose of these rules?

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Definitions:

Calculability

A principle, often related to rationalization and modernity, emphasizing quantification and measurement in decision-making processes.

Quantity Over Quality

A focus on producing or achieving more in number, often at the expense of excellence or condition.

McDonaldization

The process by which the principles of fast food restaurants are coming to dominate more sectors of societies worldwide, emphasizing efficiency, predictability, and control.

Dimension

Dimension is a measurable extent of some kind, such as length, width, height, or time, which helps define the scope or magnitude of an object or concept.