b. If Connie receives a 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 a 5 percent capital and profits interest, how much income must she report and what is her tax basis in the LLC interest?

Required information Problem 20-48 (LO 20-2) (Algo) [The following information applies to the questions displayed below.] Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $49,000 of accounts payable and no other liabilities. The current fair market value of Winterhaven's capital is $280,000. (Leave no answer blank. Enter zero if applicable.)