Question
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
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 $28,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $148,000, Cost of Goods Sold - $88,000, Depreciation Expense - $44,000, Long-Term Capital Gains - $13,000, Qualified Dividends - $5,800, and Municipal Bond Interest - $3,800. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4?
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