Question
In 2014, Joanne invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported
In 2014, Joanne invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $340,000 in 2014 and $180,000 in 2015. Joanne's share of the LLC's losses was $68,000 in 2014 and $36,000 in 2015. How much of these losses can Joanne deduct?
a. $68,000 in 2014; $36,000 in 2015.
b. $68,000 in 2014; $22,000 in 2015.
c. $0 in 2014; $0 in 2015.
d. $68,000 in 2014; $0 in 2015.
e. None of the above.
- show computation
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
