Question
Dimple LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, Dimple
Dimple LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, Dimple paid guaranteed payments of $20,000 to partner Perry.
Assuming Perry owns a 30% capital and profits interest, determine much income will he report for the year and its character.
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College Accounting A Practical Approach Chapters 1-25
Authors: Jeffrey Slater
13th Edition
9780133791006
