Emmy contributes $40,000 to a business entity in exchange

Emmy contributes $40,000 to a business entity in exchange for a 30% ownership interest. During the first year of operations, the entity earns a profit of $200,000, and at the end of the year, it has liabilities of $75,000.

Calculate Emmy’s basis for her ownership interest if the entity is (a) a C corporation, (b) an S corporation, and (c) a partnership.

a.  If the entity is a C corporation, Emmy’s ownership interest (basis) is .

b.  If the entity is an S corporation, Emmy’s ownership interest (basis) is 

1. c.  If the entity is a partnership, Emmy’s ownership interest (basis) is.