AC4600/6600 Spring 2023 Exam 3 1. Wrigleyville, LLC is taxed as a partnership and is owned by David Ross and Wilson Contreras. David owns a 54% interest in the LLC's capital and profits. At the beginning of the year, David's basis in his LLC interest was $125,000, which includes his share of the LLC's nonrecourse debt as noted below. Wrigleyville reported the following information for 2022. Assume that all expenses were ordinary and necessary and reasonable. Amounts in parentheses represent expense or loss. Partnership Separately trade or stated item Description Amount business income or expense Sales revenue Cost of goods sold $1,445,699 (658,987) Long-term capital gain 12,000 Tax-exempt interest income 1,250 Guaranteed payments (50% to each (60,000) member) Employee wages (110,800) Regular tax depreciation expense (24,587) Meals for business expense- assume 100% deductible (3,450) Advertising expenses (7,500) Business travel (5,300) Miscellaneous deductible business (11,029) expenses Nondeductible fines (4,000) Charitable contributions (10,500) Cash distributions to members by (75,000) percentage of profits interest In addition to the above items, Wrigleyville, LLC decreased its nonrecourse debt from $100,000 as of January 1, 2022 to $75,000 as of December 31, 2022. Answer the following questions based on the above information. (Worth 22 total points)