Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales-$150,000, cost of goods sold-$90,000, depreciation expense-$45,000, long-term capital gains-$15,000, qualified dividends-$6,000, and municipal bond interest-$3,000. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?
A. ($15,000).
B. $9,000.
C. $6,000.
D. $15,000.
E. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
Answer: E
You might also like to view...
Selecting an outside supplier is always done with a formal "request for proposal."
Indicate whether the statement is true or false
The report that is prepared after the posting is completed at the end of the accounting period that shows the items of expense by department and in total, and is used to prove the balance of the Factory Overhead Control account is the:
a. Schedule of Fixed Cost. b. Summary of Factory Overhead. c. Flexible Budget. d. Subsidiary Ledger.
The Civil Rights Act of 1866 is unconcerned with national origin employment discrimination
Indicate whether the statement is true or false
Briefly explain the events that cause the dissolution of a limited partnership under RULPA
What will be an ideal response?