Marcie Is a 40% Member of the M&A LLC

question 99

True/False

Marcie is a 40% member of the M&A LLC.Her basis is $10,000 immediately before the LLC distributes to her $30,000 of cash and land (basis to the LLC of $20,000 and fair market value of $25,000).As a result of the proportionate, nonliquidating distribution, Marcie recognizes a gain of $20,000 and her basis in the land is $0.

---

Definitions:

Sensorimotor Stage

The first of Jean Piaget's stages of cognitive development, where infants from 0 to 2 years understand the world through their actions and sensory experiences.

Cognitive Development

The growth and change in mental capacities such as learning, attention, memory, language, and reasoning over time.

Physical Interaction

The effect that objects have on each other because of their mass and physical proximity, often resulting in a change in motion or position.

Cognitive Development

Refers to the progression of thinking, problem solving, and decision-making abilities from infancy through adulthood.