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QUESTION 10 Rolla owns a 25% interest in RSVP LLC. RSVP is taxed as a partnership. On December 1, 2020, her outside basis in
QUESTION 10 Rolla owns a 25% interest in RSVP LLC. RSVP is taxed as a partnership. On December 1, 2020, her outside basis in the LLC Interest is $40,000- The FMV of her LLC interest is $70,000. The LLC distributes $25,000 cash to Rolla on December 15, 2020. RSVP earned $200,000 in 2020. What portion of the $25,000 cash distribution must Rolla reflect in her 2020 taxable income? O $0 $6,250 $12,500 $25,000
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