How is the land recorded for book capital account purposes


When Atwood Construction LLC was formed, Priscilla contributed land (value of $814,000 and basis of $700,000) $80,000 in securities and $20,000 cash. Antonio contributed securities (value of $914,000 and basis of $853,000). Both partners received a 50% interest in partnership profits and capital.

a. How is the land recorded for § 704(b) book capital account purposes?

For § 704(b) book capital account purposes, Atwood Construction records the land at $_________.

b. What is Atwood Construction's tax basis in the land?

c. If Atwood Construction sells the land several years later for $1,100,000, Priscilla reports a $__________ gain and Antonio 's gain is

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Accounting Basics: How is the land recorded for book capital account purposes
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