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As the beginning of the current tax year, Leona invests $100,000 for a forty percent (40%) interest in Fannie Company. At the end of the

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As the beginning of the current tax year, Leona invests $100,000 for a forty percent (40\%) interest in Fannie Company. At the end of the current tax year, Fannie Company earned a Net income of $400,000 and had end of the tax year liabilities of $300,000. If Fannie Company is an 5 Corporation, Leona's basis in her stock at the end of the current tax year is: $380.000 $720,000 $200,000 $100,000

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