365 Question 1 50 pts Entity was formed several years ago. At the beginning of this year, Chris acquired a 15% interest in the Entity by transferring property worth $65,000 in which she had basis of $50,000. At the beginning of this year, the Entity had recourse debt of $200,000. This year, Chris loaned $20,000 (bona fide debt) to the Entity. The Entity's results for the year are as follows: Loss from operations LTCG Municipal bond interest income Charitable contributions Interest expense related to muni bond ($520,000) 40,000 32,000 4,000 8,000 In addition, during the year, Chris received a distribution of $48,000. If the entity is a C corporation, assume that the distribution is a dividend. The C corporation charitable contribution limitation is 10%. At the end of this year, the Entity's balance sheet shows recourse debt balance of $100,000. The Chris Loan balance remains unchanged. Required (a, b and c): a) Assume Entity is a General Partnership - Compute Chris's outside basis. b) Assume Entity is an S corporation - Compute Chris's outside basis. c) Assume Entity is a C corporation - Compute Chris's outside basis. HTML Editore 365 Question 1 50 pts Entity was formed several years ago. At the beginning of this year, Chris acquired a 15% interest in the Entity by transferring property worth $65,000 in which she had basis of $50,000. At the beginning of this year, the Entity had recourse debt of $200,000. This year, Chris loaned $20,000 (bona fide debt) to the Entity. The Entity's results for the year are as follows: Loss from operations LTCG Municipal bond interest income Charitable contributions Interest expense related to muni bond ($520,000) 40,000 32,000 4,000 8,000 In addition, during the year, Chris received a distribution of $48,000. If the entity is a C corporation, assume that the distribution is a dividend. The C corporation charitable contribution limitation is 10%. At the end of this year, the Entity's balance sheet shows recourse debt balance of $100,000. The Chris Loan balance remains unchanged. Required (a, b and c): a) Assume Entity is a General Partnership - Compute Chris's outside basis. b) Assume Entity is an S corporation - Compute Chris's outside basis. c) Assume Entity is a C corporation - Compute Chris's outside basis. HTML Editore