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Problem 10-46 (LO. 8, 9, 12) The RB LLC is owned equally by Romer and Brad. At the beginning of the year, Romer's basis is

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Problem 10-46 (LO. 8, 9, 12) The RB LLC is owned equally by Romer and Brad. At the beginning of the year, Romer's basis is $40,000 and Brad's is $32,000 RB reported the following income and expenses for the current tax year. Net ordinary business income (loss) (Form 1065, page 1. line 28) Long-term capital gains Distribution to Brad Payment to Great Health Hospital for Romer's medical expenses ($64,000) 12,000 ($30,000) ($24,000) If an answer is zero, enter"0". Use the ordering rules of Exhibit 10.2 (and the loss limitation rules), and calculate Romer's basis in his partnership Interest at the end of the year. Basis before loss allocation: Ordinary loss allowed under 5 704(d): Ending basis in interest: Based on this calculation, what does Romer report on his tax return She reports a of and b. Use the ordering rules of Exhibit 10.2 (and the loss limitation rules), and calculate Brad's basis in his partnership interest at the end of the year. Basis before loss allocation: Ordinary loss allowed under 6704(d): $ Ending basis in interest: Based on this calculation, what does Brad report on his tax return? He reports

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