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Mira and Lemma are equal owners of a business entity. Each contributed $84,000 cash to the business. Then the entity acquired a $336,000 loan from
Mira and Lemma are equal owners of a business entity. Each contributed $84,000 cash to the business. Then the entity acquired a $336,000 loan from a bank. This year operating profits totaled $100,800. Determine Lemma's basis in her interest at the end of the tax year assuming that the entity is a partnership, a C corporation, or a S corporation. a. If the entity is a partnership, Mira and Lemma each have a basis of 5 at the end of the year. b. If the entity is a C corporation, Mira and Lemma each have a basis of $ at the end of the year. c. If the entity is an s corporation, Mira and Lemma each have a basis of $ at the end of the year
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