$2.$ After reviewing the Balance Sheet in the Exhibits tab for South LLC$,$ the increase in each partner$$s share of recourse debt is $$4,000.$

$[$Original text$]$ The increase in each partner$$s share of recourse debt is $$4,000.$

The increase in each partner$$s share of recourse debt is $$0.$

The increase in each partner$$s share of recourse debt is $$1,333.$

The increase in each partner$$s share of recourse debt is $$2,000.$

The decrease in each partner$$s share of recourse debt is $$667.$

$3.$ South LLC has made a distribution to Smokey of land with a fair market value of $$25,000$ and adjusted basis of $$19,000.$ Assume that Smokey$$s basis in his LLC interest before the distribution is $$100,000.$ Smokey must recognize gain of $$6,000$ and his basis in the land is $$25,000.$

$[$Original text$]$ Smokey must recognize gain of $$6,000$ and his basis in the land is $$25,000.$

Smokey must recognize gain of $$25,000$ and his basis in the land is $$25,000.$

Smokey must recognize gain of $$25,000$ and his basis in the land is $$19,000.$

Smokey must recognize gain of $$0$ and his basis in the land is $$19,000.$

$4.$ After reviewing the payment document to Aubie Tiger, I have concluded that this payment is not deductible by South LLC and not subject to self$-$employment tax by Aubie.

$[$Original text$]$ I have concluded that this payment is not deductible by South LLC and not subject to self$-$employment tax by Augie.

I have concluded that this payment is deductible by South LLC and not subject to self$-$employment tax by Aubie.

I have concluded that this payment is not deductible by South LLC and is subject to self$-$employment tax by Aubie.

I have concluded that this payment is deductible by South LLC and is subject to self$-$employment tax by Aubie.

$5.$ Ignoring debt and assuming the basis at the beginning of the year for Aubie is $$35,000,$ the ending basis for Aubie is $$190,133.$

$[$Original text$]$ The ending basis for Aubie is $$190,133.$

The ending basis for Aubie is $$155,133.$

The ending basis for Aubie is $$152,800.$

The ending basis for Aubie is $$143,133.$