Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Georgio owns a 1 0 percent profits and capital interest in Rain Tree LLC . For the current year, Rain Tree had the following revenues,

Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses:
Sales revenue $ 92,000
Gain on sale of land (1231)19,500
Cost of goods sold (48,000)
DepreciationMACRS (6,650)
179 deduction*(17,100)
Employee wages (13,900)
Nondeductible fines and penalties (4,500)
Municipal bond interest 7,000
Short-term capital gains 5,250
Guaranteed payment to Sandra (5,700)
*Assume the 179 property placed in service limitation does not apply.
a. How much ordinary business income (loss) is allocated to Georgio for the year?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For MBAs

Authors: Peter Easton, Robert Halsey, Mary Lea McAnally, John Wild

8th Edition

1618533584, 9781618533586

More Books

Students also viewed these Accounting questions