Question
If two partners each contributed $90000 in exchange of 50% interest in the company in 2020. Basis in flow through ownership interest on January 2021
If two partners each contributed $90000 in exchange of 50% interest in the company in 2020. Basis in flow through ownership interest on January 2021 is $80000. Each investor holds 50 ownership units of the company. Each contributed additional equity of $45,000 on October 31, 2021. No additional shares were issued.
One personally loaned the company $40,000 during 2021.
The company has an outstanding loan of $200,000 from a local bank. Both owners personally guaranteed the loan.
On December 31, 2021, TCP made a cash distribution of $5,000 to each investor to pay income taxes on their flow-through income.
Find : C corporation stock. S corporation stock LLC
- What the original investment
- Ending Basis
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The scenario is an LLC Limited Liability Company based on the following factors Flowthrough taxation ...
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
