Hypo 2

Same facts as above. Debbie didn't damage June's rug. Instead, June loved the paint job and gave Debbie an extra $1,000 in cash.

Assume Debbie respects her duty of loyalty to the LLC and deposits the $1,000 into Eagle Painting Services, LLC's account. Sadly, soon thereafter Debbie and Ian both develop terrible latex allergies, thus bringing to an untimely end their once proonce-proudud LLC.

Also sad is that the only asset remaining in the LLC account at the close of its business operations is the $1,000 from June.

How much of that does Ian get?

[Hint: Remember the terms of their operating agreement?]

	1.	$500, because Ian and Debbie were the only two members of the LLC
	2.	$100, because Ian's ownership interest in the LLC was 90%
	3.	$500, because if it weren't for Debbie's honoring her duty of loyalty the money wouldn't have been in the account in the first place
	4.	$900, because Ian is entitled to 90% of the LLC's profits