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1 2 . A and B are equal owners of Newco. They each contributed $ 2 5 , 0 0 0 in cash to organize

12. A and B are equal owners of Newco. They each contributed $25,000 in cash to organize the entity. In the first year of operation, the company obtained a $100,000 recourse loan, and earned $30,000. There we no entity distributions. At years end, A and B each have basis in their ownership interest of $25,000. The entity is a(n):
a. LLC
b. General partnership
c. Limited partnership
d. C corp.
e. S corp.

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