Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $37,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $157,000, Cost of Goods Sold - $97,000, Depreciation Expense - $53,000, Long-Term Capital Gains - $22,000, Qualified Dividends - $6,700, and Municipal Bond Interest - $3,700. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?

Multiple Choice

• ($30,000).

• $3,400.

• $300.

• $7,000.

• None of the choices will be reported as ordinary business income (loss) on Schedule K-1.