Assume the same facts as Question 38 that George W. and Jeb…

Assume the same facts as Question 38 that George W. and Jeb agree that George W.’s contribution of services to the LLC will be valued as a $200,000 contribution, that Jeb’s contribution is the $100,000 cash he paid, and that there is no specific agreement on distributions by the LLC. There is also no agreement between George W. and Jeb regarding the transfer of membership interests.