Hi! Thank you! I totally agree with the basis adjustment issue. However, I am more confused with the offsetting account they used for the basis adjustment. They put the basis adjustment of the Investment to a cash account, linked to the bank account as a sub account, and called it shares receivable. I would think it should be put against just a basic AR current asset. Especially since this was never a cash transaction, it was only a non cash, share transaction.
Also, the transaction did not occur until the following year, so I am wondering if the form was completed accurately? I have seen plenty of K-1's, but never one where distributions are disclosed prior to occurance.
