CH 21-HW Book Problem 21-46 (Algorithmic) (LO. 14) At the beginning of the tax year, Melodie's basis in the MIP LLC was $70,000, including her $45,500 share of the LLC's abilities. At the end of the year, MDP distributed to Melodie cash of $10,500 and inventory (basis af $8,400, fair market value of $10,500). In addition, MIP repaid all of its liabilities by the end of the year a. If this is a proportionate current distribution, what is the tax effect of the distribution to Melode and MLP? After the distribution, what is Melodie's basis in the inventory and in her MIP interest? If this is a proportionate current distribution, the cash distribution plus relief of liabilities decrease Melodie's basis to After the distribution of inventory, what is Melodie's basis in the inventory and in her HIP interest? Basis in inventory 8,400 Basis in MAP Fred PW 11. 12 b. Would your answers to part a change this had been a proportionate liquidating distribution? If this had been a proportionate liquidating distribution, then Melodie would have recognized a loss of basis in the inventory would have been s and her 13 14. Fuesbeck 15 Check My Wort 16 17. rudback Check My Check My Work