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Brad is a $40\%$ member in the BB LLC$.$ At the beginning of the tax year, his tax basis capital account showed a balance of $$120,000.$ In this case, his capital account equals his tax basis in the LLC interest excluding his share of the LLC$\text{'}$s debts. His prior year$-$end Schedule K$-1$ showed recourse debt $($guaranteed by Brad$)$ and nonrecourse debt of $$10,000$ and $$20,000,$ respectively. During the current year, BB reported net ordinary income of $$200,000$ and nondeductible expenses of $$2,000.$ There were no distributions during the year. At the end of the year, Brad's Schedule K$-1$ showed recourse $($guaranteed$)$ and nonrecourse debt of $$20,000$ and $$30,000,$ respectively. How much is Brad's basis in the LLC interest at the end of the year?

a$.$ $$250,000.$

b$.$ $$200,000.$

c$.$ $$249,200.$

d$.$ $$199,200.$

In computing a group's consolidated taxable income, the first step is to:

a$.$ Obtain IRS permission to file on a consolidated basis for another tax year.

b$.$ Compute the allowable group NOL carryforward.

c$.$ Compute the taxable income amounts for each affiliate on a standalone basis.

d$.$ Eliminate the results of all intercompany transactions for the tax year.