Chp 10 EOC eBook Problem 10-43 (a) (LO. 7, 8, 9, 10, 11) Noi and Tu share equally in the profits, losses, and capital of the accrual basis NT Products LLC. Noi 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, Noi's capital account has a balance of $427,000, and the LLC has debts of $118,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about NT's operations for the current year is obtained from the LLC's records: $562,000 Ordinary income Dividend income 8,000 Long-term capital loss 18,000 22,000 Long-term capital gain Charitable contribution 4,000 Cash distribution to Noi 11,000 Year-end LLC debt payable to unrelated parties is $80,000. Assume all transactions are reflected in her beginning capital and basis in the same manner. What is Noi's basis in her LLC interest: a. Noi's basis in the LLC interest at the beginning of the year is $ 486,000 V Feedback Check My Work 741,000 b. Noi's basis in the LLC interest at the end of the year is $ Check My Work All work saved. Assignment Score: 84.78% UdreassignmentSessionLocator=&inprogress=false Chp 10 EOC eBook c. What income, gains, losses, and deductions does Noi report on her income tax return? If an amount is zero, enter "o". Ordinary income Net long-term capital gain Dividend income Charitable contribution deduction Cash distribution Feedback Check My Work Partially correct d. Based on the information provided, what other calculations is Noi required to make? Noi may be eligible to deduct up to 20 % of the ordinary income as qualified business income under 5 199A, and will make that calculation on her return. This deduction does not require a cash outflow by Noi or the LLC, and it does not affect her basis or capital account. As someone treated as a general partner, Noi's distributive share of the LLC's ordinary business income is subject to self-employment tax and possibly the additional Medicare tax. Her net investment income from the LLC may be subject to the additional tax under $ 1411. Check My Work All work saved. Assignment Score: 84.78% O e. Prepare Noi's capital account rollforward from the beginning to the end of the tax year. How does her ending capital account d her ending basis as calculated in part (a)? Capital account balance, beginning year Ordinary income Dividend income Net long-term capital gain Less: Charitable contribution Cash distribution to Amy $ Capital account balance, end of year Noi's capital account differs from her basis only by the amount of her share of LLC liabilities Feedback WWW