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?
A) $199,200.
B) $200,000.
C) $220,000.
D) $249,200.
E) $250,000.
Correct Answer:

Verified
Correct Answer:
Verified
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