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

Understand the reasons why minors might have restrictions on their ability to disaffirm contracts and which types of contracts they cannot disaffirm.

Comprehend the legal implications of capacity and consent in contract law, including how it affects minors, the mentally ill, and intoxicated individuals.

Distinguish between contracts that are void, voidable, and enforceable based on legality and public policy.

Recognize the principles behind the liability of parents for their children's contracts and distinguish between contracts for necessaries and non-necessaries.

---

Definitions:

Coercive Power

The ability to influence others' behavior via threats, punishment, or negative reinforcements.

Law Enforcement Officer

An officer of the law tasked with maintaining public order, preventing and detecting crime, and enforcing the laws.

Relational Dimension

The dimension of communication that offers cues about the emotions, attitudes, and amount of power and control a speaker feels in relation to listeners.

Communication Message

The information or key point that is being conveyed from the sender to the receiver through various means.