Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person.

At the beginning of the current tax year, Amy's capital account has a balance of $764,000, and the LLC has debts of $496,600 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records.

Operating income*	$1,146,000
W-2 wages	200,000
Depreciation expense	300,000
Interest income	11,460
Long-term capital loss	7,640
Long-term capital gain	22,920
Charitable contribution (cash)	11,510
Cash distribution to Amy	57,300
Unadjusted basis of partnership property immediately after acquisition	1,600,000

* Operating income equals revenue less operating expenses (other than expenses listed separately above).

Year-end LLC debt payable to unrelated parties is $347,620. Assume that all transactions are reflected in Amy's beginning capital and basis in the same manner. Also assume that all AM Products' activities are eligible for the qualified business income deduction.

a. Calculate Amy's basis in her LLC interest at the beginning and end of the tax year. Use her capital account as a starting point. LLC interest at the beginning of the year: $fill in the blank 1cea16022fa7fcc_1 LLC interest at the end of the year: $fill in the blank 1cea16022fa7fcc_2.

b. What income, gains, losses, and deductions does Amy report on her income tax return?

If an amount is zero, enter "0".

Ordinary income	$fill in the blank bb5487071021fd7_1
Net long-term capital gain	$fill in the blank bb5487071021fd7_2
Interest income	$fill in the blank bb5487071021fd7_3
Charitable contribution deduction	$fill in the blank bb5487071021fd7_4
Cash distribution	$fill in the blank bb5487071021fd7_5

c. Based on the information provided, what other calculations is Amy required to make?

Amy may be eligible to deduct up to fill in the blank aa63c0f9c02305d_1% of the ordinary income as qualified business income under 199A and will make that calculation on her return. This deduction require a cash outflow by Amy or the LLC, and it affect her basis or capital account. As someone treated as a general partner, Amy's distributive share of the LLC's ordinary business income subject to self-employment tax and possibly the additional Medicare tax. Her from the LLC may be subject to the additional tax under 1411.

d. Prepare Amy's tax basis capital account rollforward from the beginning to the end of the tax year. How does her ending capital account differ from her ending tax basis in the LLC interest as calculated in part (a)?

Capital account balance, beginning year			$fill in the blank 193edf044fc3fa8_1
Ordinary income	$fill in the blank 193edf044fc3fa8_2
Interest income	fill in the blank 193edf044fc3fa8_3
Net long-term capital gain	fill in the blank 193edf044fc3fa8_4
			fill in the blank 193edf044fc3fa8_5
			$fill in the blank 193edf044fc3fa8_6
Less:
Charitable contribution	$fill in the blank 193edf044fc3fa8_7
Cash distribution to Amy	fill in the blank 193edf044fc3fa8_8
			fill in the blank 193edf044fc3fa8_9
Capital account balance, end of year			$fill in the blank 193edf044fc3fa8_10

Amy's capital account differs from her basis only by the amount of her share of LLC .

e. Using the information from parts (a) to (d), prepare Amy's Schedule K1 as if you were the preparer of AM Products LLC's tax return. Provide all information that Amy needs to the extent you can.

Enter all amounts as positive numbers.