I don't believe there should be a solid line.. From the side view, the object would appear to be one column (ignoring the little nub). Since the bottom portion transitions from being rectangular to circular in a smooth fashion, no solid line should be observed. Think of it this way: if you were to run your finger along that transition, you would feel no sharp edge. Sidenote: Please do not interpret this sharp/smooth distinction as meaning that smooth surfaces don't have detectable lines. In this example, since this is one continuous shape, there is no way to detect the depth from a 2D side view. Thus, the dotted line representing the sharp groove in the middle portion (where the semicircle ends) would not be obstructed.
I hope this makes sense. Let me know if you need further explanation