Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC, is $7,500. This includes his $2,000 one-fourth share of the LLC's debt. Bob's 704(b)capital account is $14,500. If Tom bought Bob's LLC interest for $12,000, what would Tom's outside basis be in Freedom, LLC?
A)$7,500
B)$10,000
C)$12,000
D)$14,000

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The Answer of Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC, is $7,500. This includes his $2,000 one-fourth share of the LLC's debt. Bob's 704(b)capital account is $14,500. If Tom bought Bob's LLC interest for $12,000, what would Tom's outside basis be in Freedom, LLC?
A)$7,500
B)$10,000
C)$12,000
D)$14,000

Tom Is Talking to His Friend Bob, Who Has an Interest