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    Recognized Gain Calculations

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    Please help me with the following showing calculations:

    Lemonade, LLC distributes property to Arlene, one of its members. At the time of the distribtutions, Arlene has an outside basis of $50,000. The FMV of the property is $90,000 and its inside tax basis to Lemonade is $70,000. this is a nonliquidiating distribution. What is Lemonade's recognized gain on the distribution?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:46 pm ad1c9bdddf
    https://brainmass.com/business/accounting/recognized-gain-lemonade-llc-248671

    Solution Summary

    The solution calculates the recognized gain for lemonade, LLC.

    $2.19

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