Assume the same facts as in Problem 50, except that Suz-Anna was formed as an LLC instead of a general partnership.
a. How would Suz-Anna’s ending liabilities be treated?
b. How would Suzy’s basis and amount at risk be different?

Data From Problem 50:

Suzy contributed business-related assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in the Suz-Anna Partnership. Anna contributed land and a building valued at $640,000 (basis of $380,000) in exchange for the remaining 60% interest. Anna’s property was encumbered by a qualified nonrecourse debt of $100,000, which was assumed by the partnership. The partnership reports the following income and expenses for the current tax year:

Sales                                                                                  $560,000
Utilities, salaries, and other operating expenses                360,000
Short-term capital gain                                                         10,000
Tax-exempt interest income                                                     4,000
Charitable contributions                                                         8,000
Distribution to Suzy                                                              10,000
Distribution to Anna                                                             20,000

During the current tax year, Suz-Anna refinanced the land and building. At the end of the year, Suz-Anna had recourse debt of $100,000 for partnership accounts payable and qualified nonrecourse debt of $200,000.