When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC:
Basis Fair Market Value
Cash $20,000 $20,000
Land* 100,000 360,000
Totals $120,000 $380,000
*nonrecourse debt secured by the land equals $160,000+
James, Harold, and Jenny each contributed $220,000 in cash for a 25 percent profits and capital interest.
Following the format in Exhibit 20-2, prepare a tax basis balance sheet for High Horizon LLC showing the tax capital accounts for the members.
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