​Brad Is a 40% Member in the BB LLC

Multiple Choice

​Brad is a 40% member in the BB LLC.At the beginning of the tax year,Brad's capital account showed a balance of $120,000.In this case,his capital account equals his basis in the LLC interest excluding his share of the LLC's debts.His Schedule K-1 showed recourse debt (guaranteed by Brad) and nonrecourse debt of $10,000 and $20,000,respectively.During the current year,BB reported net ordinary income of $200,000 and non-deductible expenses of $2,000.There were no distributions during the year.At the end of the year,Brad's share of recourse (guaranteed) and nonrecourse liabilities were $20,000 and $30,000,respectively.How much is Brad's basis in the LLC interest at the end of the year?
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A) ​$199,200.
B) ​$200,000.
C) ​$220,000.
D) ​$249,200.
E) ​$250,000.