LO.5 Eloise contributes $40,000 to a business entity in exchange for a 30% ownership interest. During the first year of operations, the entity earns a profit of $200,000. At the end of that year, the entity has liabilities of $75,000.

a. Calculate Eloise’s basis for her stock if the entity is a C corporation.

b. Calculate Eloise’s basis for her stock if the entity is an S corporation.

c. Calculate Eloise’s basis for her partnership interest if the entity is a partnership.