Charlie contributes $80,000 to a business entity in exchange for a 30% ownership interest. During the first year of operations, the entity reports ordinary income of $300,000 and a capital gain of $7,000. The entity also distributes $12,000 to Charlie. At the end of the year the entity has liabilities of $100,000.

Assume the business entity is a partnership: What is Charlies ending basis in his ownership interest? How much gain/income/loss will Charlie report related to the entity?

Assume the business entity is a S corporation: What is Charlies ending basis in his ownership interest? How much gain/income/loss will Charlie report related to the entity?

Assume the business entity is a C corporation: What is Charlies ending basis in his ownership interest? How much gain/income/loss will Charlie report related to the entity?