Jane has a 25% interest in Comprehensive Collision Services LLC, a member-managed LLC which is treated as a partnership for Federal income tax purposes. At the beginning of the year, her tax basis in her interest was $150,000. She works fulltime in the business and receives a guaranteed payment of $50,000 for her services to the LLC. Additionally, the LLC paid her health insurance premiums of $10,000. The LLC's books for the year ended December 31, 2020, show the following: Income Statement Sales 800,000 Cost of Goods Sold (430,000) Gross Profit 370,000 Interest Income 500 Dividends 3,000 Gain from the Sale of Equipment 10,000 Gain from the Sale of Investment Securities 5,000 Toal Income 388,500 Salaries and Wages 85,000 Guaranteed Payment 50,000 Partner Health Insurance 10,000 MACRS Depreciation 40,000 Rents 10,000 Taxes 8,500 Utilities 5,000 Fines and Penalties 3,000 Cash Contributions 2,000 Total Expenses 213,500 Book Income 175,000 Balance Sheet 12/31/2019 12/31/2020 Assets 600,000 775,000 Nonrecourse Liabilities 280,000 350,000 Partners' Capital 320,000 425,000 The dividends were on stocks in U.S. companies that were owned by the LLC for many years. The holding period for the investment securities sold was long-term. The LLC made total distributions of $70,000 to the owners, which was paid based on the owner's interests in the LLC. Book and tax