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Eloise contributes $40,000 to a business entity in exchange for a 30% owner-ship interest. During the first year of operations, the entity earns a profit
Eloise contributes $40,000 to a business entity in exchange for a 30% owner-ship interest. During the first year of operations, the entity earns a profit of $200,000, and at the end of the year, it has liabilities of $75,000. Calculate Eloises basis for her ownership interest if the entity is:
a. A C corporation.
b. An S corporation.
c. A partnership.
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