Jamie Owns a 40% Interest in the JSD LLC

question 41

Multiple Choice

Jamie owns a 40% interest in the JSD LLC. In liquidation of the entity, Jamie receives a proportionate distribution of $20,000 cash, inventory (basis of $12,000 and fair market value of $14,000) , and land (basis of $10,000 and fair market value of $30,000) . Jamie's basis in the entity immediately before the distribution was $50,000. As a result of the distribution, what is Jamie's basis in the inventory and land, and how much gain or loss does she recognize?

• A) $0 basis in inventory; $30,000 basis in land; $0 gain or loss.
• B) $12,000 basis in inventory; $18,000 basis in land; $0 gain or loss.
• C) $12,000 basis in inventory; $10,000 basis in land; $8,000 loss.
• D) $14,000 basis in inventory; $30,000 basis in land; $14,000 gain.
• E) $30,000 basis in inventory; $0 basis in land; $0 gain or loss.

Recognize the importance of family rules, boundaries, and the dynamics within families.

Identify Erikson's developmental tasks and their impact on individual growth.

Appreciate the significance of helpers understanding their families of origin to improve counseling effectiveness.

Grasp the role of group counseling in the context of self-awareness and emotional regulation.

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Definitions:

Subordination

A ranking of priorities in claims for ownership or interest; often used in debt agreements to determine the sequence of payments.

Extension

In finance, an agreement to extend the maturity date or due date of a financial instrument or loan.

Insolvency

A financial condition where an individual or entity cannot meet their debt obligations as they come due.

Bankruptcy

A federal court procedure to protect a failing firm from its creditors until the best resolution to its problems can be found.