Connie recently provided legal services to the Winter haven LLC and received 5 percent interest in the LLC as compensation Winter haven currently has $50,000 of accounts payable and no other debt The current fair market value of Winter haven 's capital is $200,000 a If Connie receives 5 percent cap...

a Connie reports 10000 of ordinary income or 5 percent of the LLCs ca ...

Connie recently provided legal services to the Winter haven LLC and received 5 percent interest in the

Question:

Connie recently provided legal services to the Winter haven LLC and received 5 percent interest in the LLC as compensation. Winter haven currently has $50,000 of and no other debt. The current fair market value of Winter haven's capital is $200,000.
a. If Connie receives 5 percent capital interest only, how much income must she report, and what is her tax basis in the LLC interest?
b. If Connie receives 5 percent profits interest only, how much income must she report, and what is her tax basis in the LLC interest?
c. If Connie receives 5 percent capital and profits interest, how much income must she report, and what is her tax basis in the LLC interest?
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...