J&J, LLC was in its third year of operations when J&J decided to expand the number of members from two, A & B, with equal profits and capital interests to three members, A, B, and C. The third member, C, will contribute her financial expertise to the LLC in exchange for a 1/3 capital interest in J&J. Given the balance sheet below reflecting the financial position of J&J on the date member C is admitted, what are the tax consequences to members A, B, and C, and to J&J when C receives her capital interest? If, instead, member C receives a 1/3 profit interest, what would be the tax consequences to members A, B, and C, and to J&J?
Definitions:
Lewin's Model
A model for understanding organizational and behavioral change, typically described through the phases of unfreezing, changing, and refreezing.
Evaluating Results
The process of analyzing and assessing outcomes of strategies or actions to determine their effectiveness and impact.
Feedback
Information given back to individuals regarding their performance or behavior, meant to help in improvement and development.
Unfreezing Phase
A stage in Lewin's change management model where existing behaviors or processes are prepared for change by reducing forces that maintain the status quo.
Q4: The Quill decision reaffirmed that out-of-state businesses
Q10: Which of the following entity characteristics are
Q10: Maria defers $100 of gain realized in
Q13: Super Sadie, Incorporated manufactures sandals and distributes
Q31: Absent a treaty provision, what is the
Q56: Jason is a 25% partner in the
Q88: A rectangle with a triangle within it
Q92: Assume that Clampett, Inc. has $200,000 of
Q95: A stock redemption is always treated as
Q107: Roxy operates a dress shop in Arlington,