Reference no: EM132990521

Problem 1: Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $6,000 outside basis, (2) Joe, a member with a 45% profits and capital interest and a $11,000 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $3,000 outside basis. The following items were reported on Styling's Schedule K for the year: ordinary income of $102,000, Section 1231 gain of $16,000, charitable contributions of $26,000, and tax-exempt income of $4,000. In addition, Styling received an additional bank loan of $13,000 during 20X8. What is Jane's tax basis after adjustment for her share of these items?

Option 1: $60,050.
Option 2: $30,000.
Option 3: $33,250.
Option 4: $35,700.