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Mira and Lemma are equal owners of an entity. Each contributed $25,000 cash to the entity. In addition, the entity obtains a loan of $100,000.

Mira and Lemma are equal owners of an entity. Each contributed $25,000 cash to the entity. In addition, the entity obtains a loan of $100,000. The profits for the year are $30,000. Determine Mira and Lemma's basis at the end of the period assuming the entity is: a. A partnership. b. A C corporation. c. An S corporation.

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