Level 3

Yes, with making the necessary changes and the offset to retained earnings, which I did, after 2018 income is included equity is positive.

On another note, now the client must recognize over $700,000 in income because if I say the loans are loans, then they must be forgiven and income recognized. If I say the loans are not bona fide (which they don't appear to be) that would a shareholder distribution. Can I say they are loan to shareholder and leave them on the books even though the LLCs are dissolved?

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