Ashley has a 65% interest in a business entity.Her basis for her ownership interest is $300,000.The net income of the business for the tax year is $100,000 and the entity liabilities have increased by $60,000.Determine the effect of the earnings and the liabilities on Ashley's basis for her ownership interest if the business is:

Question

Ashley has a 65% interest in a business entity.Her basis for her ownership interest is $300,000.The net income of the business for the tax year is $100,000 and the entity liabilities have increased by $60,000.Determine the effect of the earnings and the liabilities on Ashley's basis for her ownership interest if the business is:
Ashley has a 65% interest in a business entity.Her basis for her ownership interest is $300,000.The net income of the business for the tax year is $100,000 and the entity liabilities have increased by $60,000.Determine the effect of the earnings and the liabilities on Ashley's basis for her ownership interest if the business is:

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The Answer of Ashley has a 65% interest in a business entity.Her basis for her ownership interest is $300,000.The net income of the business for the tax year is $100,000 and the entity liabilities have increased by $60,000.Determine the effect of the earnings and the liabilities on Ashley's basis for her ownership interest if the business is:

Ashley Has a 65% Interest in a Business Entity