Question 1 ashley has a 65 interest in a business entity, Ask an Expert

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Question: 1. Ashley has a 65% interest in a business entity. Her basis for her ownership interest is $300,000. The net income of the business for the tax year is $100,000 and the entity liabilities have increased by $60,000. Determine the effect of the earnings and the liabilities on Ashley's basis for her ownership interest if the business is:

a. A C corporation.

b. An S corporation.

c. A partnership.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92709338

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