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Hi guys, I need help with these question. Thank you so much On January 1,...

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Accounting

Hi guys, I need help with these question. Thank you so much

On January 1, 2022, Sam and Sara formed a new business entity called Nice Brother Co. Sam contributes $250,000 cash and Sara contributes land with an adjusted basis of $300,000 and fair market value of $492,000 with a mortgage of $258,000 that is assumed by Nice Brother Co.

Assume the following operating results for 2022:

Sales $ 1,500,000
Interest income from a bank $ 3,200
Royalties $ 60,000
Loss from sale of investment $ (7,000)
Cost of goods sold $ 622,000
Salaries $ 450,000
Rent $ 144,000
Maintenance $ 24,000
Utilities $ 58,000
EPA penalty $ 1,000
Depreciation ?
Charitable contribution $ 30,000
Payment to Sam for retirement* $ 15,000

*payment considered a guaranteed payment if the entity is a partnership

The companys only depreciable asset is equipment (useful life of 5 years) which will be purchased in 2022 for $100,000.

The only asset sold was an investment purchased on 2/2/22 for $28,000 and sold on 11/4/22 for $21,000

  1. What is Saras basis in the entity at the end of 2022 if the entity is a C Corporation, Partnership and S Corporation?

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