acc 317 chapter 21 homework

Chapter 21: 35, 42, 46, 47 and 49

35.  Sam and Drew are equal partners in SD, LLC, formed on June 1 of the current year.  Sam contributed Land that he inherited from his Uncle in 2005.  Sam’s Uncle purchased the land in 1980 for $30,000.  The land was worth $100,000 when Sam’s uncle died.  The fair market value of the land was $200,000at the date it was contributed to the partnership.

Drew has significant experience developing real estate.  After the LLC is formed, he will prepare a plan for developing the property and secure zoning approvals for the LLC.  Drew would normally bill a third party $ 50,000 for these efforts.  Drew will also contribute $150,000 of cash in exchange for his 50%interest in the LLC.  The value of 50% interest is $200,000

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