Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is the managing member of the LLC (treated as a general partner) and is a U.S. citizen. At the beginning of the current tax year, Amy’s capital account has a balance of $300,000, and the LLC has recourse debts of $200,000 payable to unrelated parties. All partnership recourse debt is shared equally between the partners. 

Ordinary income......................................................$ 900,000 

W–2 wages to employees.........................................200,000 

Depreciation expense...............................................300,000 

Interest income from P & G bond..............................4,000 

Long-term capital loss.................................................6,000 

Short-term capital gain.............................................12,000 

Charitable contribution..............................................4,000 

Cash distribution to Amy............................................20,000 

Unadjusted basis of partnership depreciable property......1,600,000 

Year-end LLC debt payable to unrelated parties is $140,000. Also assume that all AM Products’ activities are eligible for the qualified business income deduction and that the unadjusted basis of assets immediately after acquisition was $800,000. If all transactions are reflected in her beginning capital and basis in the same manner: 

a. What is Amy’s basis in her LLC interest at the beginning of the year? 

b. What is Amy’s basis in her LLC interest at the end of the current year?