Brad Is a 40% Member in the BB LLC

question 26

Multiple Choice

Brad is a 40% member in the BB LLC. At the beginning of the tax year, Brad's capital account showed a balance of $120,000. In this case, his capital account equals his basis in the LLC interest excluding his share of the LLC's debts. His prior year 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 non-deductible expenses of $2,000. There were no distributions during the year. At the end of the year, Brad's current year 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) $199,200.
• B) $200,000.
• C) $220,000.
• D) $249,200.
• E) $250,000.

Understand the role of personal interests and activities in depression therapy.

Explain the concept and effectiveness of adjunctive psychotherapy for bipolar disorder.

Identify common medications for depression and their targeted symptoms.

Comprehend the interpersonal psychotherapy approach to treating depression.

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Definitions:

Partnership Agreement

A contract between partners in a business that outlines the terms of the partnership, including roles, responsibilities, and profit sharing.

Provisions

Supplies of food, drink, or equipment, especially for a journey, or conditions stated in a legal document.

Rationale

The underlying reason or explanation for something.

Partnership Dissolution

The process of terminating the legal existence of a partnership, involving the winding up of its affairs, liquidation of assets, and distribution of the remaining assets among the partners.