If two partners each contributed $90000 in exchange of 50% interest in the company in 2020. Basis in flow through ownership interest on January 2021 is $80000. Each investor holds 50 ownership units of the company. Each contributed additional equity of $45,000 on October 31, 2021. No additional shares were issued.

One personally loaned the company $40,000 during 2021.

The company has an outstanding loan of $200,000 from a local bank. Both owners personally guaranteed the loan.

On December 31, 2021, TCP made a cash distribution of $5,000 to each investor to pay income taxes on their flow-through income.

Find : C corporation stock. S corporation stock LLC

1. What the original investment
2. Ending Basis

Answer rating: 100% (QA)

The scenario is an LLC Limited Liability Company based on the following factors Flowthrough taxation ... View the full answer