Question :
Shawna and Kneisha form the equal KS LLC with a cash distribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna.
a. How much profit or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any profit or loss? If so, how much?
b. What is Shawna's basis in her LLC interest?
c. What is Kenisha's basis in her LLC interest?
d. What basis does the LLC take in the property transferred by Shawna?
e. Are there more effective ways to structure the formation? Describe