Problem 10-46 (Algorithmic) (LO. 7, 9, 10) Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $932,000, and the LLC has debts of $605,800 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records. Ordinary income Interest income Long-term capital loss Long-term capital gain Charitable contribution Cash distribution to Amy $1,118,400 11,184 9,320 27,960 11,234 55,920 Year-end LLC debt payable to unrelated parties is $424,060. Assume all transactions are reflected in her beginning capital and basis in the same manner, calculate Amy's basis in her LLC interest: a. Amy's basis in the LLC interest at the beginning of the year is $ 1,234,900 Feedback b. Amy's basis in the LLC interest at the end of the year is $ 1,656,630