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For the Two Men and a Plunger return, choose the response that provides the most complete information regarding how the return would be different if
For the Two Men and a Plunger return, choose the response that provides the most complete information regarding how the return would be different if Jeffrey and Brett received guaranteed payments of $100,000 each and if Clarissa took a cash distribution of $60,000. Not much would change regarding the payments to Jeffrey and Brett, since they are the same amounts, but will be reported on different lines on the return. The additional cash distribution to Clarissa will be reflected on line 4 of Schedule K, and in box 4 on her Schedule K-1. The payments to Jeffrey and Brett will be reported on the salary expense line on page 1, because they are active participants in generating the
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