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1) Ben Chase needs to pay off some of his debts over the next few months. Which item on his balance sheet would help him decide what amounts are due

44) Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by contributing cash, property, or both. In addition to the members' contributions, their LLC will obtain a $50,000 nonrecourse loan from First Bank at the time it is formed. Brett contributes cash of $5,000 and a building he bought as a storefront for the motorcycles. The building has an FMV of $45,000, an adjusted basis of $30,000, and is secured by a $35,000 nonrecourse mortgage that the business LLC will assume. What is Brett's outside tax basis in his LLC interest?
1) Ben Chase needs to pay off some of his debts over the next few months. Which item on his balance sheet would help him decide what amounts are due in the near future? A. Current liabilities B. The budget variance C. Investment assets D. Current assets 2) A family with $45,000 in assets and $22,000 of liabilities would have a net worth of A. $23,000 B. $45,000 C. $67,000 D. $22,000 3) A budget deficit would result when a person's or family's A. actual expenses are less than planned expenses B. net worth decreases C. assets exceed liabilities D. actual expenses are greater than planned expenses 4) The tax base for an individual tax return is A. gross income B. realized income from whatever source derived C. adjusted gross income minus from AGI deductions D. adjusted gross income 5) All of the following are for AGI deductions EXCEPT A. rental and royalty expenses B. moving expenses
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C. charitable contributions D. business expenses 6) Which of the following series of inequalities is generally most accurate? A. Adjusted gross income is greater than or equal to gross income which is greater than or equal to taxable income B. Gross income is greater than or equal to adjusted gross income which is greater than or equal to taxable income C. Gross income is greater than or equal to taxable income which is greater than or equal to adjusted gross income D. Adjusted gross income is greater than or equal to taxable income which is greater than or equalt to gross income 7) Which of the following has the lowest authoritative weight? A. Private letter ruling B. Legislative regulation C. Interpretive regulation D. Revenue ruling 8) Josephine is considering taking a 6-month rotation in Paris for her job. Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris? A. Tax treaty B. Determination letter C. Private letter ruling D. Regulation 9) Which of the following has the highest authoritative weight? A. Tax article B. Text book
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