Tom Is Talking to His Friend Bob, Who Has an Interest

question 105

Multiple Choice

Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC, is $10,000. This includes his $2,500 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $17,000. If Tom bought Bob's LLC interest for $17,000, what would Tom's outside basis be in Freedom, LLC?

• A)$10,000
• B)$14,500
• C)$17,000
• D)$19,500

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Definitions:

Tripeptide

A peptide made up of three amino acids linked by peptide bonds, integral to various biological functions.

Protecting Groups

Chemical groups attached to a molecule's sensitive functional groups to block them from unwanted reactions during synthesis steps, to be removed later to reveal the original functional group.

Carboxypeptidase

An enzyme that catalyzes the hydrolysis of the carboxyl-terminal (C-terminal) peptide bond in a protein or peptide.

Sequence Information

Refers to the order of units (such as nucleotides in nucleic acids or amino acids in proteins) within a macromolecule, critical for determining its function and properties.