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2 0 . Brad is a 4 0 % member in the BB LLC . At the beginning of the tax year, his outside basis

20. Brad is a 40% member in the BB LLC. At the beginning of the tax year, his outside basis equaled $150,000, including his share of the LLCs debts. The total nonrecourse LLC debt for the prior year totaled $75,000. During the current year, BB reported net ordinary income of $200,000 and nondeductible expenses of $2,000. There were no distributions during the year. At the end of the year, LLC nonrecourse debt totaled $125,000. What is Brads basis in his LLC interest (outside basis) at the end of the year?
a. $199,200.
b. $200,000.
c. $220,000.
d. $249,200.
e. $250,000.

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