Anna and Brad are equal partners in the AB LLC. If AB distributes $10,000 of cash to Anna and a capital asset valued at $10,000 to Brad, and if both Anna and Brad continue to be members of the LLC, the distribution is classified as a proportionate current distribution.

Question

Quizplus · Accepted Answer

The distribution is considered proportionate because both partners received an equal value from the LLC, maintaining their equal partnership status, even though the forms of distribution (cash to Anna and a capital asset to Brad) were different.

Anna and Brad Are Equal Partners in the AB LLC