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Sally and Harry decide to form their new fishing pole business as an LLC Each will receive an equal profits (loss) interest by contributing cash,

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Sally and Harry decide to form their new fishing pole business as an LLC Each will receive an equal profits (loss) interest by contributing cash, property, or both In addition to the members' contributions, their LLC will obtain a $65,000 loan nonrecourse loan from First Bank at the time it is formed Harry contributes cash of $10,000 and a building he bought as a storefront for the fishing poles. The bulding has a FMV of S75,000, an adjusted basis of $35.000, and is secured by a $45.000 nonrecouse mortgage that the business LLC will assume. What is Harry's outside the basis in his LLC interest? O $105,000 $65,000 @ $60,000 O $47,500

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