Frank and Bob Are Equal Members in Soxy Socks, LLC

question 20

Multiple Choice

Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $50,000 in cash and $50,000 worth of equipment. Frank's adjusted basis in the equipment was $35,000. Bob contributed $50,000 in cash and $50,000 worth of land. Bob's adjusted basis in the land was $30,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $60,000. How much gain (loss) related to this transaction will Bob report on his X4 return?

• A)$10,000
• B)$15,000
• C)$25,000
• D)$35,000

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Definitions:

Disordered Behavior

Disordered behavior refers to actions or conduct that deviate significantly from what is considered typical or healthy, often indicating underlying mental health issues.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight, leading to severely restricted food intake and often starvation.

Teens

Young people in the stage of development between childhood and adulthood, typically between the ages of 13 and 19.

Autism Spectrum Disorder

A disorder denoted by communication and social interaction difficulties, and distinguished by repetitive and constrained thought and behavioral practices.