Styling Shoes, LLC, Filed Its 20X8 Form 1065 on March

Multiple Choice

Styling Shoes, LLC, filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax bases at the beginning of 20X8: (1) Jane, a member with a 25percent profits and capital interest and a $5,000 outside basis, (2) Joe, a member with a 45percent profits and capital interest and a $10,000 outside basis, and (3) Jack, a member with a 30percent profits and capital interest and a $2,000 outside basis. The following items were reported on Styling's Schedule K for the year: ordinary income of $100,000, Section 1231 gain of $15,000, charitable contributions of $25,000, and tax-exempt income of $3,000. In addition, Styling received an additional bank loan of $12,000 during 20X8. What is Jane's tax basis after adjustment for her share of these items?

A) $28,250
B) $31,250
C) $33,500
D) $57,250