FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20x9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20x8: (1) Jane, a member with a 25% profits and capital interest and a $15,000 outside basis, (2) Joe, a member with a 45% profits and capital interest and a $20,000 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $12,000 outside basis. The following items were reported on Stlying's Schedule K for the year: ordinary income of $120,000. Section 1231 gain of $25.000, charitable contributions of $35,000, and tax-exempt income of $13,000. In addition, Styling received an additional bank loan of $22,000 during 20x8. What is Jane's tax basis after adjustment for her share of these items?
Multiple Choice
___ $45,750.
___ $51,250.
___ $55,500.
___ $85,250.
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