Terry has a 20% ownership interest in a business for which his basis is $100,000. During the year, the entity earns profits of $90,000 and makes cash distributions to the owners of $50,000. How do these transactions affect Terry's basis if:

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The Answer of Terry has a 20% ownership interest in a business for which his basis is $100,000. During the year, the entity earns profits of $90,000 and makes cash distributions to the owners of $50,000. How do these transactions affect Terry's basis if:

Terry Has a 20% Ownership Interest in a Business for Which