Required information [The following information applies to the questions displayed below.] Rondo and his business associate, Larry, are considering forming a business entity called R\&L, but they are unsure about whether to form it as a C corporation, an S corporation, or an LLC taxed as a partnership for tax purposes. Rondo and Larry would each invest $100,000 in the business. Thus, each owner would take an initial basis in his ownership interest of $100,000 no matter which entity type is formed. Shortly after the formation of the entity, the business borrowed $40,000 from the bank. If applicable, this debt will be shared equally between the two owners. o. After taking the loan into account, what is Rondo's tax basis in his R\&L stock if R\&L is formed as an S corporation