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Comparative Entities: Amber has a 2 0 % ownership interest in an entity for which she initially contributed $ 2 5 0 , 0 0
Comparative Entities:
Amber has a ownership interest in an entity for which she initially contributed $ She
is one of the original owners of the business. During the life of the business the following have
occurred:
Cumulative losses of $ during the last three years her share would be $
Profits of $ in the current year her share would be $
The entity borrowed $ of recourse debt
Distributions to owners of $her share would be $ in the current year
Determine the tax consequences if the entity is a partnership:
a How much loss can she deduct over the three years?
b How much income will be taxable to her in the current year?
c What is the ending balance of her partnership interest show computations
Determine the tax consequences if the entity is a S Corporation:
a How much loss can she deduct over the three years?
b How much income will be taxable to her in the current year?
c What is the ending balance of her stockholder interest show computations
Determine the tax consequences if the entity is a regular Corporation:
a How much loss can she deduct over the three years?
b How much income will be taxable to her in the current year?
c What is the ending balance of her stockholder interest show computations
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