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Required information [The following information applies to the questions displayed below.] Rondo and his business...

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Accounting

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Required information [The following information applies to the questions displayed below.] Rondo and his business associate, Larry. are considering forming a business entity called R\&L, but they are unsure about whether to form it as a C corporation, an S corporation, or an LLC taxed as a partnership for tax purposes. Rondo and Larry would each invest $90,000 in the business. Thus, each owner would take an initial basis in his ownership interest of $90,000 no matter which entity type is formed. Shortly after the formation of the entity, the business borrowed $38,000 from the bank. If applicable, this debt will be shared equally between the two owners. After taking the loan into account, what is Rondo's tax basis in his R\&L stock if R\&L is formed as a C corporation

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