Cassie was an original investor in DEF LLC, a construction company. She owns a 20% interest in the company for which she paid $200,000. This year, DEF did poorly and had a taxable loss of $210,000. However, there was no need for additional contributions of capital. What is Cassie's basis in her interest in DEF at the end of this year? O $158,000. $0. O $200,000. $42,000.
Cassie was an original investor in DEF LLC, a construction company. She owns a 20% interest in the company for which she paid $200,000. This year, DEF did poorly and had a taxable loss of $210,000. However, there was no need for additional contributions of capital. What is Cassie's basis in her interest in DEF at the end of this year? O $158,000. $0. O $200,000. $42,000.
Chapter3: Income Sources
Section: Chapter Questions
Problem 86P
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Transcribed Image Text:Cassie was an original investor in DEF LLC, a construction company. She owns a 20%
interest in the company for which she paid $200,000. This year, DEF did poorly and
had a taxable loss of $210,000. However, there was no need for additional
contributions
of capital. What is Cassie's basis in her interest in DEF at the end of this
year?
O $158,000.
O $0.
O $200,000.
$42,000.
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